Pakistan’s sales of petroleum products during April 2023 were recorded at 1.2 million tons, indicating a 47% YoY decrease and a 6% MoM increase.
The drop in sales was primarily driven by lower sales of Furnace Oil and High Speed Diesel, which decreased by 84% YoY and 50% YoY, respectively.
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However, compared to the previous month, the consumption of petroleum products saw a 6% increase due to growth witnessed in High Speed Diesel and Motor Spirit, mainly led by increased agricultural activity.
Total oil sales excluding Furnace Oil amounted to 1.1 million tons in April 2023, showing a YoY increase of 55% and a MoM increase of 15%. During the 10MFY23, ex-Furnace Oil sales stood at 12.1 million tons, representing a 28% YoY decline.
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Among the listed entities, Pakistan State Oil (PSO) sales declined by 53% YoY to stand at 576,000 tons, primarily due to lower sales recorded in Furnace Oil and High Speed Diesel. PSO’s market share declined to 49% in April 2023 from 56% in April 2022.
Shell Pakistan (SHEL) sales decreased by 44% YoY and 2% MoM, while Attock Petroleum (APL) sales declined by 31% YoY but were up by 6% MoM.
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During 10MFY23, oil sales decreased by 24% YoY to 14 million tons, mainly due to economic slowdown and a decline in all major petroleum products. The higher inflationary environment, particularly the prices of Motor Spirit and High Speed Diesel, have had a significant impact on demand.
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Overall, it is expected that oil sales will continue to remain depressed amid high inflation levels and the government’s inability to provide any relief in oil product prices.
