KARACHI: Pakistan oil sales decreased by 9.0 percent on month-on-month basis to 1.11 million tons in March 2023 mainly due to lower demand of FO for power generation and slowdown in overall economic activity due to Ramazan.
This is the lowest monthly sales number in 35 months, since February to April 2020, an analyst at Topline Securities said.
The sales of FO and HSD declined by 28 percent and 17 percent on MoM respectively while the sales of MS slightly increased by 1.0 percent MoM.
On year-on-year basis, the oil sales recorded 39 percent decline in March 2023 due to fall in all major petroleum products; MS down 28 percent, HSD down 43 percent and FO down 70 percent.
Among the listed entities, Pakistan State Oil (PSO) posted a decrease of 10 percent MoM and 44 percent YoY to 536,000 tons. PSO’s market share decreased to 49 percent in March 2023 compared to 52 percent in March 2022.
Attock Petroleum (APL) sales declined 1.0 percent MoM and 30 percent YoY. While, Shell Pakistan (SHEL) sales decreased by 15 percent MoM and by 38 percent YoY. APL and SHEL market share for March 2023 was 10 percent and 8 percent respectively compared to 9 percent and 8 percent share in March 2022.
During the nine months of FY23, oil sales are down 21 percent YoY to 12.8 million tons due to economic slowdown with decline visible in all major petroleum products. Higher inflationary environment, particularly the prices of MS and HSD have had a major impact on demand.
Product wise FO and HSD have witnessed major drop with a decline of 33 percent and 25 percent on YoY respectively, while MS sales declined by 16 percent YoY in the nine months of FY23.
“We expect FY23 oil sales to drop by 20-25 percent YoY, mainly due to overall slowdown in the economy,” the analyst said adding that demand will continue to remain muted due to elevated inflation levels and inability of government to provide any relief in oil product prices.
Copyright Business Recorder, 2023
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