Oil sales increase 11 percent to 8.1mln tons in July-November

KARACHI: Sales of petroleum products increased 11 percent to 8.1 million tons during the first five months of the current fiscal year of 2020/21 as reopening of economy boosted energy demand, analysts said on Wednesday.

Major contributors were motor spirit (MS) and high speed diesel (HSD) with sales of 3.4 million tons and 3.1 million tons, respectively. Demand for furnace oil soared 31 percent.

“This volumetric growth during 5MFY21 was primarily attributed to the trade revival and rolling up demand for the automobile sector,” said Abdur Rafay, analyst at Pearl Securities.

In November, sales of oil marketing companies jumped 21 percent year-on-year to 1.7 million tons. Petroleum consumption inched up one percent month-on-month as partial lockdown was imposed amid second wave of the coronavirus pandemic. Monthly sales of MS and HSD stood at 693,000 tons and 802,000 tons, respectively.

Rafay said monthly consumption reflected demand revival for fuel. The government decided to leave the price of petrol, kerosene, and light diesel unchanged till December 15 to provide maximum relief to the public. HSD prices increased Rs4/litre owing to the increase in international price of HSD. This bi-monthly price revision is boosting the overall industry performance.

“We expect the industry volumes to make a new high in lieu with the upcoming projects, demand from independent power producers and higher automobile sales,” he said. “Also, the second wave of COVID-19 is likely to restrict the growth in sales volumes in case of any lockdown or restriction on trading and business activities in the country.”

Pakistan State Oil (PSO) volumes posted an upturn of 10 percent to 3.8 million tons in 5MFY21. HSD sales were up 19 percent and MS 13 percent. Overall sales remained elevated during November in which HSD added the most reaching at 390,000 tons, an increase of 28 percent. On a yearly basis, volumes increased 15 percent year-on-year to 762,000 tons. PSO had a market share of 44 percent in November.

Attock Petroleum Limited (APL) sales remained almost flat to 773,000 tons in five months. Last month, sales volume fell 16 percent month-on-month to 142,000 tons. Year-on-year sales decreased 4 percent from 149,000 tons a year earlier.

Hascol Petroleum Limited (Hascol) sales surged 9 percent month-on-month to 94,000 tons in November. Hascol’s sales fell 4 percent to 410,000 tons in 5MFY21.

Shell Pakistan Limited sales continued the upward trend and grew 33 percent year-on-year to 137,000 tons in November. On a cumulative basis, sales of Shell remained flat in 5MFY21.