Pakistan Witnesses 11% Drop in Petroleum Sales in 9MFY24

Pakistan Witnesses 11% Drop in Petroleum Sales in 9MFY24

Karachi, April 2, 2024 – Pakistan’s petroleum sector has encountered a significant decline in sales during the first nine months of the fiscal year 2023-24, recording an 11 percent drop compared to the same period last year.

The decrease, spanning from July to March, has prompted concerns within the industry and economic circles.

Data reveals that the total sales of petroleum products in Pakistan during this period amounted to 11.34 million tons, a notable reduction from the 12.80 million tons recorded during the corresponding period in the previous fiscal year. This decline extends across all major categories, with Motor Spirit (Petrol), High-Speed Diesel (HSD), and Furnace Oil (FO) witnessing decreases in volumetric sales, reaching 5.30 million tons, 4.58 million tons, and 0.84 million tons, respectively.

In March 2024, there was a slight uptick in petroleum sales, with total dispatches reaching 1.15 million tons, indicating a 4% year-on-year increase. This surge can be attributed to a modest revival of economic activities and a reduction in the influx of smuggled petroleum products from neighboring Iran.

The month of March also saw individual increases in sales volumes of Motor Spirit (MS) and High-Speed Diesel (HSD) by 3% and 17% year-on-year, respectively. However, Furnace Oil (FO) sales experienced a sharp decline of 48% year-on-year, dropping to 0.04 million tons, primarily due to reduced dependency on FO-based power plants. Month-on-month, petroleum sales exhibited a 3% growth in March 2024, driven by factors such as fewer days in February and an increasing price trend in Motor Spirit (MS).

Analyzing sales performance on a company-wise basis, it is observed that Pakistan State Oil (PSO) witnessed an 11% year-on-year improvement in sales in March 2024, primarily due to increased sales of MS and HSD by 13% and 15%, respectively. In contrast, Attock Petroleum Limited (APL) and Hascol Petroleum Limited (HASCOL) experienced declines of 9% and 41% year-on-year, respectively, during the same period.

For the nine-month period ending March 2024, APL, PSO, and Shell Pakistan Limited (SHEL) saw decreases in petroleum sales by 4%, 13%, and 16% year-on-year, respectively. Conversely, HASCOL bucked the trend, exhibiting a growth of 9% year-on-year during the same period.

Market share dynamics also underwent changes during the nine-month period of fiscal year 2023-24. PSO’s market share contracted by 0.6% to 50.0% compared to 50.7% in the previous fiscal year, while SHEL’s market share dropped by 0.4% to 7.3% year-on-year. APL and HASCOL, however, saw increases in their market shares, reaching 10.1% and 2.5%, respectively, during the period. Meanwhile, other Oil Marketing Companies (OMCs) maintained a stable market share of 30.1%.

The decline in petroleum sales in Pakistan underscores the challenges faced by the sector, influenced by both domestic and international factors. Industry stakeholders are closely monitoring the situation as efforts are underway to address the underlying causes and stimulate growth in the petroleum market.