Petroleum products sales up by 7pc in May

KARACHI: Sales by oil marketing companies (OMCs) in Pakistan have recorded a 7.0 per cent increase in May 2024, highest after eight months.

According to data released by Topline Research, the sale of petroleum products totalled 1.4m tonnes compared to 1.10m tonnes in the same period last year. Sales in May also jumped by 18 per cent against the sales in April 2024.

During the first 11 months of FY2024, the sale of petroleum products decreased by 9.0 per cent to 13.8m against 15.26m tonnes recorded in the same period last year.The increase in sales has been attributed to many factors including the harvesting season, a crackdown on the smuggling of petroleum products, and a drop in their prices.

“Diesel sales improved significantly, posting the growth of 18 per cent YoY to 643,000 tonnes due to the harvesting season and a drop in prices by Rs16.3/litre in May,” said Myesha Sohail, analyst at Topline Securities. The crackdown on the smuggling of petroleum products has also resulted in a slight uptick in HSD sales.

Motor Spirit (MS) sales were up 1.0 per cent YoY and 14 per cent MoM to 607,000 tonnes, taking the first 11 months of this fiscal sales to 6.4m tonnes, down 5.0 per cent YoY. Petrol prices also saw a drop of Rs20.84/litre in May.

Furnace Oil (FO) sales for May 2024 fell by 24 per cent YoY to 69,000 tonnes due to lower power generation from FO-based power plants.Per analysts, due to improvements in the sale of petroleum products, the government has achieved PDL revenue collection target. The target was set at Rs 869bn for FY24 which has been met in 11MFY24 crossing Rs907bn.

The breakup of company-wise sales figures shows that among the listed entities, Attock Petroleum (APL) sales clocked in at 140,000 tonnes, a 14 per cent YoY and 42 per cent MoM rise in May 2024 primarily led by 34 per cent YoY and 62 per cent MoM increase in HSD sales. APL’s market share in HSD increased by 150bps MoM to 9.8 per cent.

Pakistan State Oil (PSO) recorded a rise of 11 per cent YoY and 19 per cent MoM rise to 665,000 tonnes in May 2024. PSO’s market share in HSD and MS clocked in at 49.9 per cent and 43.8 per cent, down 170bps and 290bps MoM in May 2024.

Shell Pakistan (SHEL) saw a 13 per cent YoY and a 23 per cent MoM rise to 100,000 tonnes. The market share of Shell largely remained unchanged in both MS and HSD.

Hascol sales clocked in at 41,000 tonnes, up 51 per cent MoM, down 39 per cent YoY. The market share of Hascol improved by 90bps and 30bps in MS and HSD on MoM basis to 4.0 per cent and 2.6 per cent, respectively during May 2024.