AVN 65.31 Decreased By ▼ -0.86 (-1.3%)
BAFL 30.25 No Change ▼ 0.00 (0%)
BOP 4.63 Decreased By ▼ -0.10 (-2.11%)
CNERGY 3.89 Decreased By ▼ -0.12 (-2.99%)
DFML 13.50 Decreased By ▼ -0.60 (-4.26%)
DGKC 42.15 Decreased By ▼ -1.54 (-3.52%)
EPCL 46.13 Increased By ▲ 1.48 (3.31%)
FCCL 11.45 Decreased By ▼ -0.38 (-3.21%)
FFL 5.19 Increased By ▲ 0.22 (4.43%)
FLYNG 5.82 Decreased By ▼ -0.28 (-4.59%)
GGL 10.04 Decreased By ▼ -0.34 (-3.28%)
HUBC 63.21 Increased By ▲ 0.91 (1.46%)
HUMNL 5.73 Decreased By ▼ -0.12 (-2.05%)
KAPCO 27.81 Increased By ▲ 0.26 (0.94%)
KEL 2.15 Decreased By ▼ -0.06 (-2.71%)
LOTCHEM 25.37 Decreased By ▼ -1.23 (-4.62%)
MLCF 21.65 Decreased By ▼ -0.87 (-3.86%)
NETSOL 84.95 Decreased By ▼ -1.25 (-1.45%)
OGDC 86.64 Increased By ▲ 0.37 (0.43%)
PAEL 10.96 Decreased By ▼ -0.31 (-2.75%)
PIBTL 4.21 Decreased By ▼ -0.07 (-1.64%)
PPL 78.65 Decreased By ▼ -1.43 (-1.79%)
PRL 13.61 Decreased By ▼ -0.05 (-0.37%)
SILK 0.88 Decreased By ▼ -0.02 (-2.22%)
SNGP 41.00 Decreased By ▼ -0.75 (-1.8%)
TELE 6.01 Decreased By ▼ -0.20 (-3.22%)
TPLP 16.02 Decreased By ▼ -0.25 (-1.54%)
TRG 111.89 Decreased By ▼ -0.66 (-0.59%)
UNITY 14.01 Decreased By ▼ -0.34 (-2.37%)
WTL 1.14 Decreased By ▼ -0.06 (-5%)
BR100 4,026 Decreased By -48.6 (-1.19%)
BR30 14,402 Decreased By -123 (-0.85%)
KSE100 40,451 Decreased By -396 (-0.97%)
KSE30 15,110 Decreased By -101.7 (-0.67%)
Follow us

KARACHI: In December 2022 oil sales in the country decreased by 14 percent on month-on-month basis to 1.34 million tons as compared to the previous month. The decline in oil sales was mainly due to seasonal trend of slowdown in December, lower demand of FO for power generation and overall slowdown in the economy, experts said.

This is the lowest monthly sales figure since the first Covid-19 lockdown period of February-April 2020 when the sales of FO/HSD/MS declined by 10 percent, 22 percent and 8 percent on MoM basis, respectively.

The total oil sales recorded decline of 11 percent year-on-year in December 2022 as compared to the same month of 2021 due to drop in sales of all major petroleum products, as MS was down 11 percent, HSD down 15 percent and FO down 3 percent on YoY basis.

The YoY drop in oil sales was primarily due to higher fuel prices, overall reduction in economic activity and lower FO-based power generation, said Nasheed Malik of Topline Securities.

Among the listed entities, the Pakistan State Oil (PSO) posted a decrease of 23 percent on MoM basis and 9 percent on YoY basis to 626,000 tons. The PSO’s market share improved to 47 percent in December 2022 as compared to 46 percent in December 2021.

The sales of Attock Petroleum Limited (APL) declined 9 percent on MoM basis and 16 percent on YoY. Shell Pakistan’s (SHELL) sales decreased by 4 percent on MoM and by 18 percent on YoY basis. The market shares of APL and SHEL for December 2022 were 9 percent and 8 percent respectively as compared to 10 percent and 9 percent in December 2021.

During the first half of FY23, the oil sales are down 19 percent on YoY basis to 9.03 million tons due to economic slowdown with decline visible in all major petroleum products, Nasheed Malik said, adding that higher prices of MS and HSD have also had a major impact on demand.

Product-wise FO and HSD have witnessed the largest drop with a decline of 24 percent and 23 percent on YoY basis, respectively, while MS sales declined by 15 percent on YoY in the first half of FY23.

“We expect FY23 oil sales to drop by 20 percent on YoY basis, mainly due to overall slowdown in the economy. Local prices are set to remain elevated due to government’s lesser fiscal space, which would continue to dent demand,” Nasheed Malik said.

Copyright Business Recorder, 2023

Comments

Comments are closed.

Dec oil sales drop by 14pc MoM to 1.34m tons

SBP denies USD rate capping caused loss

Import of used tractors: ECC asks MoC, SBP to rethink

IMF conditionalities: Govt raises fuel prices in a gesture of compliance

Imran Khan censures govt for ‘massive’ fuel hike

Dar says fiscal discipline has to be imposed

Hike to fuel inflation: Tarin

Decline in cess collection lands body in trouble: Food ministry seeks Rs666.64m grant for cotton committee

PKR slide likely to fuel inflation in a big way

Israel appears to have been behind drone strike on Iran: US official

Termination of SEL’s LoS: PPIB seeks comments from CPPA-G, NTDC