KARACHI: Sales of Oil Marketing Companies (OMC) increased eight percent to 1.6 million tons in July 2020, with major contributions from high-speed diesel (HSD) and motor spirit (MS).
On sequential basis, sales volumes witnessed a growth of three percent to clock in at 1.6 million tons supported by the sales of furnace oil (FO) which surged 109 percent in July 2020.
Pearl Securities in its report on Wednesday said, “The upsurge in OMCs sales during the month can be attributed to the upsurge in economic and industrial activities, ease in lockdown, stability in oil prices, and higher power generation. Furthermore, OMCs sales volumes are likely to witness a bang as the economy has resumed the recovery phase.”
Pakistan State Oil (PSO) volumes depicted an increase of 7.0 percent YoY to clock in at 806,000 tons in July with HSD and MS volumes increasing by 34 percent and 24 percent, respectively. FO sales clocked in at 114,000 tons as against 31,000 tons in the previous month. PSO enjoyed the highest market share of 68 percent in July 2020.
Attock Petroleum Limited (APL) continues to grow, witnessing an increase of nine percent in volumes to 166,000 tons during July 2020, as against 153,000 tons in the same period last year. FO is the major contributor in surging volumes for APL, as its sales surged 65 percent to stand at 63,000 tons.
Slaes volumes of Hascol Petroleum Limited (HASCOL) increased 35 percent in July to stand at 89,000 tons as compared to 66,000 tons in the same month last year. The major contributors for HASCOL were MS and HSD which increased by 138 percent and 44 percent in July.
Despite increase in industry volumes, Shell Pakistan Limited (SHEL) volumes declined four percent to clock in at 125,000 tons in July as against 130,000 in the corresponding month last year. MS emerged as a disappointment for SHELL, with sales down nine percent
Analysts believe OMCs volumes would post healthy growth in FY21.