KARACHI: The oil sales in Pakistan in September 2022 declined by 22 percent on year-on-year basis to 1.53 million tons.
The recorded number is also well below the 6-month rolling average of 1.8 million tons. Current monthly number is a definitive signal of economic slowdown since the months of July and August included lower number of working days (Eid Holidays and WFH) and torrential rains, experts said.
High Speed Diesel (HSD) sales were up by 5.0 percent on MoM to 520,000 tons while Motor Spirit (MS) and Furnace Oil (FO) sales declined by 2.0 percent on MoM and 7.0 percent on MoM respectively to 628,000 and 305,000 tons.
Pakistan oil sales recorded 22 percent on YoY decline in September 2022 due to fall in all major petroleum products; MS down by 22 percent on YoY, HSD down by 26 percent on YoY, and FO down by 24 percent on YoY. The YoY drop in oil sales is primarily due to rise in fuel prices, lower car sales, lower Agricultural activity and monsoon season/floods which resulted in reduced demand of petroleum products.
Among the listed entities, Pakistan State Oil (PSO) sales posted an increase of 2.0 percent on MoM and decline of 18 percent on YoY to 806,000 tons. PSO market share increased to 53 percent compared to 50 percent share at the same time last year (Sep-21).
Attock Petroleum (APL) sales declined 8.0 percent on MoM and 32 percent on YoY. While Shell Pakistan sales increased by 4.0 percent on MoM and declined by 22 percent on YoY. APL and SHEL market share for Sep-22 was 9.0 percent and 8.0 percent, respectively.
During the first quarter of FY23, oil sales were down by 23 percent on YoY to 4.49 million tons due to economic slowdown with decline visible in all major petroleum products, Nasheed Malik at Topline Securities said.
“We expect FY23 oil sales to drop by 20-25 percent on YoY, mainly due to lower growth in Agriculture sector, decline in auto sales and higher petroleum prices,” Malik said.
Copyright Business Recorder, 2022
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