Pakistan’s Petroleum Sales Plummet by 13% in 8MFY24

Pakistan’s Petroleum Sales Plummet by 13% in 8MFY24

Karachi, March 2, 2024 – Pakistan’s petroleum industry has witnessed a substantial 13% decline in sales during the first eight months (July – February) of fiscal year 2023-24, compared to the same period in the previous fiscal year.

Data reveals that Pakistan’s petroleum product sales stood at 10.18 million tons during this period, a stark drop from 11.69 million tons recorded in the corresponding months of the last fiscal year. The downward trend continued in February 2024, with a year-on-year decrease of 8% to 1.12 million tons, compared to 1.22 million tons in the same month of the previous year. On a month-on-month basis, sales plunged by 19% compared to January 2024, reaching 1.38 million tons.

Analysts at Arif Habib Limited attribute this decline to two key factors: higher petroleum product prices and reduced dependency on Furnace Oil (FO) for power production.

In February 2024, Petrol or Motor Spirit (MS) sales dipped by 1%, reaching 0.54 million tons, while High-Speed Diesel (HSD) sales volumes plummeted by 7% year-on-year to 0.45 million tons. Furnace oil (FO) sales witnessed a significant 58% year-on-year drop to 0.05 million tons.

The month-on-month decline in petroleum sales for February 2024 was influenced by a rise in MS and HSD prices, as well as a reduction in the number of days in the month. MS sales decreased by 12% month-on-month, HSD by 13%, and FO dispatches nosedived by 73% month-on-month.

Throughout the first eight months of fiscal year 2023-24, total petroleum product sales dropped by 13% year-on-year to 10.18 million tons, compared to 11.69 million tons in the same period last year. Product-wise, the sales of MS, HSD, and FO were 4.73 million tons, 4.12 million tons, and 0.80 million tons, respectively.

Company-wise, Pakistan State Oil (PSO) witnessed a 5% year-on-year decrease in February 2024, while Attock Petroleum Limited (APL) and Shell Pakistan (SHEL) experienced 1% and 15% year-on-year falls, respectively. Hascol Petroleum Limited (HASCOL) maintained stable sales in February 2024.

During July – February 2023-24, APL, PSO, and SHEL observed year-on-year declines of 4%, 15%, and 18% in petroleum sales, while HASCOL showcased a noteworthy 19% year-on-year growth.

Market-wise, PSO’s market share dropped to 49.9% in the first eight months of the current fiscal year, down from 50.9% in the same period of the last fiscal year. SHEL’s market share decreased to 7.2% year-on-year, APL and HASCOL increased to 10.3% and 2.5%, respectively, while other oil marketing companies (OMCs) maintained a stable market share of 30.2% in July – February 2023-24.