Petroleum products off-take drops 21pc in Feb

KARACHI: Sale of petroleum products plunged plunged by 21 percent to 1.22 million tonnes in month of February this fiscal compared to 1.54 million tonnes in same month of last fiscal.

According to data of oil consumption in the country also dropped to 11.69 million tonnes in first eight months of the current fiscal from 14.44 million tonnes in same months of last financial year, showing a negative growth of 19 percent.

The decrease in the oil consumption was recorded in all petroleum products i.e. petrol, diesel and furnace oil.

The sale of petrol plunged by 15 percent to 0.55 million tons in month of February from 0.65 million tonnes in same month of last financial year. In first eight months of this fiscal, petrol sale also dropped by 15 percent to 5.03 million tonnes from 5.91 million tonnes in the corresponding months of last fiscal. The sale of diesel witnessed 19 percent decline to 0.48 percent in month of February compared to 0.59 million tonnes in a month of last fiscal. Whereas it was down by 22 percent to 4.43 million tons in first eight months of this fiscal compared to 5.69 million tonnes in same months of last financial year.

The sale of Furnace Oil was also down by 21 percent to 1.22 million tonnes in the month of February compared to 1.54 million in the same month of last fiscal whereas the eight months sale of Furnace Oil dropped to 11.69 million tonnes compared to 14.44 million tonnes in same months of last financial year. Analysts attribute the slump in sales of petroleum products to higher petroleum prices, slowdown in economic activity, a decline in automobile sales, and lower furnace oil-based power generation.

“OMC sales declined by 21 percent YoY during Feb’23,” brokerage Arif Habib said. “During the month of Feb’23 the OMC industry sales declined by 21 percent YoY (-16 percent MoM) to 1.22 million tonnes. This takes total sales to 11.69 million tonnes during 8MFY23, declined by 19 percent YoY.”

The company-wise data showed that Pakistan State Oil (PSO) sales fell by 19 percent year-on-year in February. PSO’s MS sales witnessed a decline of 19 percent to 0.26 million tonnes. HSD sales declined by 13 percent, while FO sales plunged by 82 percent. The overall sales volume under PSO declined by 18 percent year-on-year to 5.95 million tonnes in July-February.

Attock Petroleum Ltd. (APL) registered a significant decline of 23 percent in February on the back a fall in FO, HSD, and MS sales by 46 percent, 19 percent, and 15 percent, respectively. During July-February, overall sales took a 20 percent hit amid stunted offtake of MS, HSD, and FO.

Shell’s offtake fell by 18 percent in February as the sales of HSD and MS dipped by 27 percent and 14 percent, respectively. The company’s overall offtake dropped by 21 percent year-on-year on low MS and HSD sales. HASCOL’s sales, however, increased by 5 percent in February. During the period in review, MS sales witnessed an increase of 5 percent to 0.02 million tonnes, while HSD sales showed a 6 percent growth. The company’s sales dropped by 4 percent year-on-year to 0.21 million tons for the first eight months.