Sale of petroleum products in Pakistan clocked in at 1.3 million tons in May 2023, a decline of over 40% year-on-year amid the economic slowdown.
The decline is attributed to “surge in petroleum prices, slowdown in economy, availability of smuggled petroleum products from Iran, and reduction in FO [Furnace Oil]-based power generation”, said brokerage house Arif Habib Limited (AHL) in a note on Friday.
FO sales plummeted by 80% YoY in May 2023, amounting to 0.09 million tons.
Sale of MS (petrol) plunged 24% YoY, clocking in at 0.60 million tons in May. Volume of High-Speed Diesel (HSD) decreased by 36% YoY, settling at 0.54 million in May 2023.
However, on a month-on-month basis, POL products offtake witnessed an increase of 11% during May.
Volumes of MS inched up by 4%, whereas HSD sales increased by 18%. The monthly rise was witnessed due to “harvesting in the month of May 23, which led to total higher consumption of HSD, and revival of demand for MS and HSD amid drop in prices,” said AHL.
Meanwhile, FO sales also registered an increase of 26% MoM, “given increase in demand for FO-based power generation amid commencement of summer season,” said the brokerage house.
Sale of petroleum products in Pakistan plunges 46% in April amid economic downturn
During the first eleven months of FY23, sales of total petroleum products dropped by 26% YoY to 15.26 million tons compared to 20.62 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 6.78 million tons, 5.83 million tons and 1.96 million tons, respectively.
Company-wise, PSO’s offtake depicted a drop of 51 % YoY in May 2023, which was majorly contributed by a decrease in sales of FO by 96% YoY, while MS sales registered a fall of 33% YoY. HSD sales of PSO also plunged 40% YoY.
Similarly, sales of Attock Petroleum Limited (APL) and Shell Pakistan Limited (SHEL) dived by 42% and 45% YoY, respectively, due to a fall in sales of all products.
However, Hascol Petroleum Limited (HASCOL) sales witnessed an increase of nearly 700% YoY.
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