KARACHI: Pakistan’s Oil Marketing Companies (OMCs) recorded their highest sales in 19 months, reaching 1.45 million tons in June 2024. This represents an 8.0 percent YoY increase and a 4.0 percent MoM rise, driven mainly by reductions in petrol and diesel prices.
Despite this strong monthly performance, total sales for FY24 totaled at 15.3 million tons, 8.0 percent YoY decline compared to 16.6 million tons in FY23. This marks an 18-year low, with sales volumes similar to those last seen in FY06.
Excluding furnace oil (Ex-FO) sales in June 2024 were 1.34 million tons, reflecting an 8.0 percent YoY increase but a 2.0 percent MoM fall. For FY24, ex-FO sales totaled 14.2 million tons, a 2.0 percent YoY decline.
Product wise, Motor Spirit (MS) sales saw a growth of 9.0 percent YoY and 15 percent MoM to 700,000 tons in June-2024. This was due to reduction in petrol prices by Rs 14.94/litre to Rs 258.16/litre and seasonal effect of holidays and summer vacations, Myesha Sohail, an analyst at Topline Securities said.
High-Speed Diesel (HSD) saw a 5.0 percent YoY rise, due to reduction diesel prices but 11 percent MoM.
The MoM fall is due to seasonal demand amid end of harvesting season, Myesha Sohail added.
FO sales for June-2024 rose by 6.0 percent YoY and 54 percent MoM to 106,000 tons. This increase is due to higher power generation from FO-based power plants, Myesha added.
Among the listed Companies, Attock Petroleum (APL) sales clocked in at 129,000 tons in June-2024, a 14 percent YoY fall primarily led by 61 percent YoY fall of FO sales and a 8.0 percent MoM fall due to a 22 percent fall in HSD sales.
Pakistan State Oil (PSO) saw a flattish YoY trend and 2.0 percent MoM fall to 649,000 tons in June-2024. PSO’s market share in HSD and MS clocked in at 46.6 percent and 44.2 percent, down 325bps and up 37bps MoM, respectively in June-2024.
Shell Pakistan (SHEL) saw a 12 percent YoY and a 6.0 percent MoM rise to 107,000 tons. HASCOL sales clocked in at 38,000 tons, down 37 percent YoY and 8.0 percent MoM.
“Government set Petroleum Development Levy (PDL) collection target of Rs 869 billion for FY24 which has reached Rs 1.0 trillion, up 15 percent, based on our calculation,” Myesha Sohail said.
“After witnessing decline for 2 consecutive years, we are expecting single digit growth for FY25 sales numbers in both MS and HSD due to gradual recovery in economy,” Myesha added.
Copyright Business Recorder, 2024
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