Oil sales surge 21pc to 1.6 million tons in August

KARACHI: Oil sales increased 21 percent year-on-year to 1.6 million tons in August with furnace oil consumption in the power generation sector having sharply soared amid resurgence in post-lockdown activities, analysts said on Wednesday.

Oil marketing companies sold 1.3 million tons in August last year. Sales of furnace oil (FO), high-speed diesel (HSD) and motor spirit increased 71 percent to 311,000 tons, 25 percent to 508,000 tons and 10 percent to 697,000 tons in August, according to the Oil Companies Advisory Committee. “The pickup in FO volumes was largely attributable to low FO prices resulting in higher FO-based power generation and overall rise in economic activity following improvements in COVID-19 situation,” said analyst Fawad Basir at Topline Research. However, on a sequential basis, sales volumes fell 7 percent to 1.5 million tons. However, FO sales increased 31 percent from 238,000 tons in July.

“The decline in OMCs sales during the month can be attributed to the heavy rainfall and flooded situation across the country, which restricted the trading activities,” said analyst Abdur Rafay at Pearl Securities. “OMCs volumes are likely to surge in FY21 as the economic activities would likely improve post-Covid.” Rafay said FO sales are expected to remain higher as the government lifted the ban on its import to support the rising demand from power generations. Furthermore, the government decided to keep the oil prices unchanged for the month of September as the monsoon season emerged as a burden on people. “Moreover, in the upcoming time the price revision on bi-monthly basis will help the industry overcome the exchange/inventory losses,” he added. In two months (July-August), sales volume increased 14 percent to 3.2 million tons. That was compared with 2.8 million tons noted in the same period last fiscal year. HSD supported the volumes during the two months, surging 24 percent to clock in at 1.18 million tons.

Pakistan State Oil’s (PSO) sales volume increased 26 percent to clock in at 754,000 tons in August with FO and HSD being the key contributors. FO sustained the slump in PSO sales volumes up by 63 percent to clock in at 186,000 tons as against 114,000 tons in July.

Sales volume improved 16 percent to 1.5 million tons in 2MFY2021. Moreover, PSO enjoyed the highest market share of 49 percent in August.

Attock Petroleum Limited sales fell in August, witnessing a slump of 10 percent in volume to 128,000 tons as against 143,000 tons August last year. However, on a sequential basis, APL volumes fell 23 percent compared with 166,000 tons in July. The overall volume of APL remained flat in 2MFY21 to clock in at 294 million tons as against 295 million tons last year. Hascol Petroleum Limited (Hascol) sales surged 20 percent year-on-year to stand at 75,000 tons in August. On a sequential basis, Hascol’s volume shrank 16 percent from 89,000 tons in July. Overall volumes escalated 27 percent to stand at 164 million tons in 2MFY2021. Despite increase in industry volumes, Shell Pakistan Limited sales declined 8 percent year-on-year to 106,000 tons in August. During 2MFY2021, sales volume dropped 6 percent to 231 million tons.