Domestic oil sales surge by 57pc in April

Domestic oil sales surge by 57pc in April

KARACHI: Sales of oil marketing companies (OMCs) recorded 57 percent increase in April 2021 over the same month of the last year.

The sales of petroleum products were at 1.67 million tons in April 2021 as compared with 1.07 million in the corresponding month of the last year.

Analysts at Topline Securities said that Pak OMCs sales increased by 13 percent MoM in April 2021, wherein sales of High Speed Diesel (HSD) rose by 47 percent MoM due to harvesting season of Wheat crop.

Excluding HSD, sales of other petroleum products are likely to witness a decline of 7 percent MoM due to onset of the month of Ramadan, which generally limits economic activities and shortens working hours in the country.

On a YoY basis, sales of petroleum products are likely to increase by 57 percent YoY due to low base in April 2020 as economic activities (mainly public/private transport) were hindered due to COVID-19 led lockdown.

This takes 10MFY21 sales numbers to clock in at 15.8mn tons, up 18 percent YoY due to 48 percent YoY growth in Furnace Oil (FO) sales as its usage in private sector power generation has increased due to expensive grid electricity.

In petrol (MS) segment, PSO remained the star performer as the company gained 250bps in market share during April 2021 to 44.7 percent. During 10MFY21, company’s share in petrol segment has improved by 350bps to 42 percent and in HSD segment has improved by 370bps to 47.4 percent.

HASCOL remained the top laggard as market share in petrol segment touched a 6.7 year low of 2.7 percent in April 2021. Compared to April 2020, market share of company in April 2021 is down by 780bps.

In HSD segment, market share of HASCOL touched more than 7-8 years low and fell below 2 percent (at 1.9 percent). Compared to April 2020, market share of company has dropped by 370bps.

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