Domestic oil sales increase by 3 percent in July

Domestic oil sales increase by 3 percent in July

KARACHI: The domestic oil sales have registered three percent growth in July 2020 owing to higher demand of furnace oil for power generation and improved economic activities.

According to details the total domestic sales of petroleum products in July 2020 was 1,653,000 tons as compared with 1,610,000 tons in the same month of the last year.

Analysts at Topline Securities said that low furnace oil prices resulted in higher FO-based power generation and overall pick-up in economic activity following improvements in COVID-19 situation.

The analysts believe greater inter-city travel has resulted in 15 percent YoY higher High Speed Diesel (HSD) and 8 percent YoY higher Motor Spirit (MS) sales during July 2020.

In July 2020, PSO sales are likely to decrease the most by 5 percent MoM as HASCOL and SHEL regain their market shares after lower sales in the previous month.

Recall that in Jun-2020, PSO had gained market share as other OMCs inventories had mostly dried out.

HASCOL is expected to post increase of 25 percent MoM with market share set to improve from 4.3 percent to 6.1 percent in HSD and from 5.3 percent to 6.7 percent in MS.

SHEL (+13 percent MoM) similarly is expected to gain market share in MS by 0.8 percent and in HSD by 2.2 percent.