Pakistan Records Lowest Annual Petroleum Sales in FY24

Pakistan Records Lowest Annual Petroleum Sales in FY24

Karachi, July 1, 2024 – Pakistan has recorded the lowest annual petroleum sales for the fiscal year 2023-24, according to data available since the fiscal year 2005-06.

Analysts at Arif Habib Limited revealed that total sales of petroleum products fell by 8 percent year-on-year (YoY) to 15.28 million tons, compared to 16.61 million tons in the same period last year (SPLY). This marks the lowest sales recorded since the available data began.

Breaking down the product-wise data, there was a noticeable decline across all categories. Volumetric sales of Motor Spirit (MS) reached 7.14 million tons, High-Speed Diesel (HSD) totaled 6.26 million tons, and Furnace Oil (FO) amounted to 1.04 million tons.

Despite the overall annual decline, June 2024 saw a notable uptick in petroleum sales, hitting 1.45 million tons, a 19-month high. This represents an 8 percent YoY growth, driven by economic recovery and a low base effect from the previous year.

Motor Spirit (MS) sales in June 2024 rose by 9 percent YoY to 0.70 million tons. Similarly, HSD dispatches increased by 5 percent YoY to 0.57 million tons. FO sales volumes also showed a 6 percent YoY increase, reaching 0.11 million tons. On a month-on-month (MoM) basis, petroleum sales in June 2024 grew by 4 percent, attributed to a fall in the prices of MS and HSD, and higher demand for FO-based power generation.

The MS sales experienced a 15 percent MoM climb, while FO dispatches surged by 54 percent MoM in June 2024. Conversely, HSD offtake dropped by 11 percent MoM due to the peak harvesting season in May 2024.

On a company-wise basis, Pakistan State Oil (PSO) maintained steady sales at 0.65 million tons in June 2024. PSO’s offtake of MS and FO saw growth of 7 percent and 48 percent YoY, respectively. Shell Petroleum Company Limited (SHEL) experienced a 12 percent YoY increase in sales during June 2024. However, Attock Petroleum Limited (APL) and Hascol Petroleum Limited (HASCOL) saw declines in offtake by 15 percent and 37 percent YoY, respectively.

During FY24, petroleum sales for APL, HASCOL, PSO, and SHEL dropped by 5 percent, 8 percent, 9 percent, and 11 percent YoY, respectively. PSO’s market share decreased by 0.6 percent to 49.4 percent in FY24, compared to 50.0 percent in FY23. APL’s market share increased by 0.4 percent to 9.9 percent YoY in FY24. SHEL’s market share reduced to 7.3 percent from 7.6 percent in the SPLY. HASCOL’s market share remained steady at 2.5 percent, while other Oil Marketing Companies (OMCs) saw their market share rise by 0.54 percent to 30.9 percent in FY24.

This significant drop in annual petroleum sales underscores the challenges faced by the industry and highlights the impact of fluctuating economic conditions and changing market dynamics.