Sale of total petroleum products in Pakistan clocked in at 1.17 million tons in April 2023, a decline of over 46% year-on-year, amid economic slowdown and rise in prices.
The decline in sales “is majorly attributable to higher petroleum prices, economic slowdown, an increase in smuggled petroleum products from Iran, and lower furnace oil (FO)-based power generation”, said Arif Habib Limited (AHL) in a note.
FO sales nosedived by 83% YoY in April 2023, amounting to 0.07 million tons.
Sale of MS (petrol) fell 24% YoY, clocking in at 0.58 million tons in April. Volume of High-Speed Diesel (HSD) plunged by 50% YoY, settling at 0.46 million in April 2023.
However, on a month-on-month basis, POL products offtake witnessed an increase of 6% during April.
Volumes of MS inched up by 4%, whereas HSD offtake increased by 16%. The monthly rise comes on account of the “ongoing harvesting season resulting in higher HSD demand, and absence of heavy rainfall across the country,” said AHL.
Meanwhile, FO sales registered a decline of 16% MoM.
Sales of petroleum products plunge 39% year-on-year in March
During the first ten months of FY23, sales of total petroleum products dropped by 24% YoY to 13.97 million tons compared to 18.44 million tons in the same period last year.
Product-wise data showed a decline in all categories; the offtake of MS, HSD and FO settled at 6.17 million tons, 5.28 million tons and 1.87 million tons, respectively.
Company-wise, PSO’s offtake depicted a drop of 53% YoY in April 2023, which was majorly contributed by a decrease in sales of FO by 98% YoY, while MS sales registered a decline of 22% YoY. HSD sales of PSO also plunged 52% YoY.
Similarly, sales of Attock Petroleum Limited (APL) and Shell Pakistan Limited (SHEL) decreased by 31% and 43% YoY, respectively, due to a fall in sales of all products.
However, Hascol Petroleum Limited (HASCOL) sales witnessed an increase of 308% YoY.
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