Sale of total petroleum products in Pakistan clocked in at 1.24 million tons in December, a decline of 7% year-on-year, as surge in prices and economic slowdown in the country suppressed demand, brokerage house Arif Habib Limited (AHL) stated in a note on Tuesday.
The decline also comes on the back of lower demand of Furnace Oil (FO) amid reliance on new coal-based power plants, the brokerage house said.
According to AHL data, FO sales nosedived by 36% YoY in December 2023, amounting to 0.08 million tons.
Sale of MS (petrol) fell 8% YoY, clocking in at 0.57 million tons. Volume of High-Speed Diesel (HSD) marginally dipped by 2% YoY, settling at 0.51 million in December 2023.
On a month-on-month basis, POL products offtake witnessed a decline of 10% during December.
POL sales plunge 24% YoY amid high prices, economic distress
Volumes of MS remained unchanged at 0.57 million tons, whereas HSD offtake decreased by 21% “owing to peak demand in November 2023 for Rabi season,” said AHL.
Similarly, offtake of FO declined by 4% MoM in December.
During the first six months of FY24, sales of total petroleum products dropped by 15% YoY to 7.68 million tons compared to 9.03 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 3.57 million tons, 3.16 million tons and 0.56 million tons, respectively, reflecting a decline of 7%, 6% and 61%.
Company-wise, PSO’s offtake depicted a drop of 5% YoY in December 2023, which was majorly contributed by a decrease in sales of FO by 11% YoY, while MS sales registered a decline of 4% YoY. HSD sales of PSO also plunged 8% YoY.
Similarly, sales of Shell Pakistan Limited (SHEL) decreased by 18% YoY, amid a fall in sales of all products.
However, Attock Petroleum Limited (APL) and Hascol Petroleum Limited (HASCOL) sales witnessed an increase of 6% and 6% YoY.
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