Pkrevenue.com

Tag: Oil sales

  • Pakistan petroleum sales slump by 24% in 2MFY23

    Pakistan petroleum sales slump by 24% in 2MFY23

    KARACHI: Petroleum sales in Pakistan registered 24 per cent decline during first two months (July – August) 2022/2023, according to data released by Oil Companies Advisory Council (OCAC).

    According to details, the sales of all petroleum products fell to 2.96 million tons during first two months of the current fiscal year as compared with 3.90 million tons in the corresponding months of the last fiscal year.

    READ MORE: Pakistan high petroleum prices massively cut oil sales in July

    Produc-wise data showed a decline in all categories; offtake of petrol, high speed diesel (HSD) and furnace oil (FO) settled at 1.23 million tons, 0.94 million tons and 0.68 million tons, respectively.

    Total Petroleum sales settled at 1.53 million tons in August 2022, witnessing a decrease of 22 per cent YoY.

    Analysts at Arif Habib Limited attributed the fall to: heavy rainfall across the country leading to floods; lower furnace oil-based power generation; and massive surge in petroleum prices.

    READ MORE: Domestic oil sales grow by 14% in 8MFY22

    Hence, MS reported a drop of 13 per cent YoY arriving at 0.64 million tons in August 2022. Similarly, High Speed Diesel (HSD) volumes decreased by 26 per cent YoY clocking in at 0.50 million in August 2022.

    Whereas, Furnace Oil (FO) sales volumes plummeted by 35 per cent YoY in August 2022, reaching 0.33 million tons. Meanwhile, petroleum offtake climbed up by 6 per cent MoM, amid a reduction in MS and HSD prices compared to July 2022. As a result, MS and HSD volumes showed a jump of 7 per cent and 12 per cent MoM, respectively. However, FO sales recorded a fall of 7 per cent MoM in August 2022.

    READ MORE: Domestic oil sales surge by 18% in 5MFY22

    Company-wise analysis shows that PSO registered a drop of 23 per cent YoY in August 2022 which was majorly contributed by plunge in sales of MS, HSD and FO by 13 per cent, 29 per cent and 36 per cent YoY, respectively.

    Similarly, sales of APL and SHEL also plummeted by 23 per cent and 19 per cent YoY, respectively. Meanwhile, HASCOL’s offtake surged by 78 per cent YoY amid massive jump in MS and HSD volumes.

    READ MORE: Pakistan cuts petroleum prices amid Russia-Ukraine War

    During 2MFY23, market share of PSO, SHEL and HASCOL remained unchanged at 52 per cent, 7 per cent and 2 per cent YoY, respectively. Whereas, market share of APL improved by 1 per cent YoY to 10 per cent (9 per cent in 2MFY22). Meanwhile, market share of other OMCs declined to 29 per cent in 2MFY23 from 30 per cent in same period last year.

  • Pakistan high petroleum prices massively cut oil sales in July

    Pakistan high petroleum prices massively cut oil sales in July

    KARACHI: A big jump in petroleum prices in Pakistan has reduced the domestic sales of oil for the month of July 2022.

    According to details released on Tuesday Pakistan oil sales commenced the fiscal year 2022/2023 with a decline of 26 per cent MoM to clock in at 1.44 million tons in July 2022 (lowest since February 2021).

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    Analysts at Topline Securities attributed the sharp decline in domestic oil sales to significant decline in all 3 petroleum products: High Speed Diesel (HSD) sales reduced by 38 per cent MoM to 444, 000 tons, Motor Gasoline (MOGAS) sales declined by 15 per cent MoM to 594,000 tons and Furnace Oil (FO) sales dipped by 23 per cent MoM to 350,000 tons.

    Major reasons behind the decline in oil sales are, (i) Eid holidays during the first half of July where inter provincial transportation activity subsided which led to low HSD sales, and (ii) monsoon season across the country resulted in lower traffic on the roads.

    READ MORE: New petroleum prices in Pakistan from July 15, 2022

    Furthermore, increase in MOGAS and HSD prices by 26 per cent and 41 per cent since Jun-22 resulted in reduced demand of petroleum products and increase in usage of public transport and car pooling.

    As compared to last year, Pakistan oil sales recorded 26 per cent YoY decline in July 2022 which is owed to drop in MOGAS and HSD Sales by 27 per cent YoY and 38 per cent YoY, respectively. Excluding FO, oil sales were down 31 per cent YoY and 26 per cent MoM in July 2022 to 1.1 million tons.

    READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

    Among the listed entities, Pakistan State Oil (PSO) sales posted 27 per cent MoM decline to 760k tons (lowest since Feb-22), mainly due to decline in HSD sales by 38 per cent MoM. In terms of market share, PSO market share clocked in at 53 per cent in Jul-22 vs. 52 per cent in July 2021.

    Other companies such as Attock Petroleum (APL) and Shell Pakistan (SHEL) also recorded drop of 29 per cent MoM and 37 per cent MoM to 142k tons and 100k tons, respectively.

    For FY23E, the analysts expect oil sales to drop by 15-20 per cent YoY in FY23E, mainly due to (i) low growth estimated in agriculture sector, (ii) likely decline in auto sales, and (iii) increase in petroleum prices.

    READ MORE: New petroleum prices in Pakistan from June 16, 2022

  • Domestic oil sales grow by 14% in 8MFY22

    Domestic oil sales grow by 14% in 8MFY22

    KARACHI: The domestic sales of petroleum products has increased by 14 per cent to 14.44 million tons during 8MFY22 – first eight months (July – February) 2021/2022.

    The total consumption during the same period of the last fiscal year was 12.67 million tons.

    READ MORE: Domestic oil sales surge by 18% in 5MFY22

    Total Petroleum sales settled at 1.54 million tons in February 2022, showing an increase of 10 per cent YoY.

    Analysts at Topline Securities attributed the increase to: healthy growth in auto sales leading to higher demand of petrol; higher reliance on furnace oil based power plants; better agricultural yields resulting in higher sales of high speed diesel; and improvement in economic activity.

    READ MORE: Pakistan’s car sales surge 61% in 7MFY22

    Hence, petrol reported a growth of 4 per cent YoY arriving at 0.65 million tons in February 2022. Similarly, High Speed Diesel (HSD) volumes witnessed an increase of 8 per cent YoY clocking-in at 0.59 million in February 2022.

    Whereas, Furnace Oil (FO) sales volumes climbed up by 28 per cent YoY in February 2022, reaching 0.22 million tons.

    READ MORE: Pakistan cuts petroleum prices amid Russia-Ukraine War

    However, petroleum offtake shrunk by 15 per cent MoM, amid i) fewer working days in February versus January, ii) lower FO based power generation, and iii) higher MS and HSD prices compared to last year.

    As a result, MS, HSD and FO volumes depicted a dip of 12 per cent, 20 per cent and 13 per cent MoM, respectively.

    READ MORE: PM Imran reduces, freezes POL prices

  • Domestic oil sales surge by 18% in 5MFY22

    Domestic oil sales surge by 18% in 5MFY22

    KARACHI: The domestic oil sales have surged by 18 per cent to 9.6 million tons during first five months (July – November) of fiscal year 2021-2022 – 5MFY22 as compared with 8.16 million tons in the corresponding months of the last fiscal year.

    Analysts at Arif Habib Limited said that double digit growth was witnessed in all categories; motor spirit, high speed diesel and furnace oil with off take undergoing a jump to 3.81 million tons, 3.74 million tons and 1.78 million tons (amid higher requirement from furnace oil based power plants), up by 11 per cent, 20 per cent and 29 per cent year on year (YoY) against 3.44 million tons, 3.12 million tons and 1.38 million tons in the same period of the last fiscal year, respectively.

    Total petroleum and lubricant sales clocked-in at 1.75 million tons in November 2021, depicting an increase of 2 per cent YoY while down 12 per cent Month on Month (MoM) on account of significant decline in furnace oil volumes which clocked in at 0.18 million tons, down by 46 per cent MoM compared to 0.33 million tons in October 2021.

    The decline in sales volumes has been attributed to power requirement in winter season which is usually lower compared to summer resulting in slowdown in dispatches and increase in prices of motor spirit (petrol) and high speed diesel.

    On yearly basis, sales volumes witnessed a meager growth of two per cent YoY which was mainly led by sales growth in furnace oil and high speed diesel by three per cent and one per cent YoY, respectively.

    Pakistan’s October oil sales highest after May 2018
  • Pakistan’s October oil sales highest after May 2018

    Pakistan’s October oil sales highest after May 2018

    KARACHI: Pakistan’s domestic oil sales in October 2021 recorded 1.99 million tons, which is the highest since May 2018, analysts at Topline Research said on Tuesday.

    Pakistan’s oil sales have increased by 17 per cent YoY to 1.99 million tons in October 2021 (and also up 3 per cent MoM), which is the highest monthly sales after May-2018.

    In first four months of fiscal year 2021/2022, Pakistan oil sales have increased by 22 per cent YoY to 7.8 million tons driven by macro recovery.

    High Speed Diesel (HSD) registered strong growth in October 2021 and was up by 25 per cent YoY to 0.8 million tons. The analysts attribute the growth to increased transportation activity and Large Scale Manufacturing (LSM) growth.

    Petrol sales were up 12 per cent YoY to 0.8 million in October 2021 led by rising car sales. This is despite a 12 per cent increase in petrol prices during the month indicating strong demand.

    Furnace Oil (FO) sales also grew by 12 per cent YoY to 0.3 million tons. FO growth may improve further in the winter season as Pakistan is likely to witness gas and RLNG shortages.

    Amongst the listed companies, Pakistan State Oil (PSO) and Shell Pakistan (SHEL) remained outperformers as sales were up 35 per cent YoY and 22 per cent YoY, respectively.

    On other hand, Hascol Petroleum (HASCOL) and Attock Petroleum (APL) reported sales decline of 73 per cent YoY and 3 per cent YoY, respectively.

    PSO achieved a market share of 52 per cent in October 2021 compared to 45 per cent in October 2020. MS and HSD sales of PSO have grown by 32 per cent and 46 per cent YoY, respectively.

    SHEL sales were mainly led by higher HSD and MS sales (up 38 per cent YoY and 11 per cent YoY, respectively). APL lower sales were mainly owing to 42 per cent YoY lower FO sales.

    HASCOL continued to face sales decline across all the segments driven by its liquidity crunch.

    Pakistan oil sales increase by 26% in September
  • Pakistan oil sales increase by 26% in September

    Pakistan oil sales increase by 26% in September

    KARACHI: Pakistan oil sales have increased by 26 percent Year on Year (YoY) to 1.93 million tons in September 2021 as compared with 1.52 tons in the same month of the last year, a report suggested on Friday.

    The same is likely to remain largely similar on a Month on Month (MoM) basis due to rising pump prices, lower transportation activity, and lower furnace oil demand, according to analysts at Topline Securities. 

    In the first quarter of the current fiscal year, Pakistan oil sales are likely to clock in at 5.8 million tons, which will be the highest quarterly sales since the fourth quarter of fiscal year 2017/2018.

    Growth in oil sales in September 2021 has mainly been driven by higher petrol and High Speed Diesel (HSD) sales that were up by 23 percent YoY and 46 percent YoY, respectively. This has been on account of increased economic activity and rising car and bike sales. Furnace Oil sales also increased by 8 percent YoY to 0.4 million tons.

    Company wise data shows that Pakistan State Oil (PSO), Shell Pakistan (SHEL) and Attock Petroleum (APL) remained major gainers whereas Hascol Petroleum (HASCOL) lost market share.

    PSO sales improved by 39 percent YoY to 1.0 million tons as the company continued to witness higher sales in all fuel segments with its market share increasing to 50 percent in September 2021 as against 46 percent in September 2020.

    SHEL also reported a 32 percent YoY increase in sales, while APL sales were also up by 22 percent YoY to 0.2 million tons. On the other hand, HASCOL’s sales declined by 57 percent YoY.

    The analysts expect Pakistan oil sales to remain strong and anticipate sales growth of around 15-20 percent in fiscal year 2021/2022.

    Petrol price increases to record high at Rs127.30/liter
  • Pakistan oil sales jump up by 26% in August

    Pakistan oil sales jump up by 26% in August

    KARACHI: Pakistan’s domestic oil sales have jumped up by 26 percent to 1.97 million tons, which is the highest since May 2018.

    Analysts at Topline Securities said that oil sales are also up 1 percent Month on Month (MoM), whereas oil sales during the first two months of the fiscal year 2021/2022 clocked in at 3.9 million tons, up 22 percent YoY. 

    Furnace oil sales improved by 63 percent YoY to 0.5 million tons in Aug-2021 primarily led by rising LNG prices and shortage in world LNG supply which is an alternative fuel for FO.

    Growth in oil sales is also fueled by economic recovery as last year’s sales were mainly impacted by lockdowns and economic slowdown.

    Consequently, MOGAS (MS) and High-Speed Diesel (HSD) sales are up 6 percent YoY and 32 percent YoY, respectively. Strong auto sales have also led to growth in these categories during the period under review.

    Company-wise data shows that Pakistan State Oil (PSO), Attock Petroleum (APL) and Shell Pakistan (SHEL) have gained in terms of their market share.

    PSO posted growth of 36 percent YoY as its oil sales clocked in at 1.0 million tons. PSO’s FO sales have jumped by 80 percent YoY as its market share in this segment improved to 66 percent in Aug-2021 vs. 60 percent in Aug-2020.

    APL’s oil sales also improved by 56 percent YoY to 0.2 million tons, whereas SHEL’s sales are up 28 percent YoY to 0.1 million tons.

    HASCOL witnessed a decline of 76 percent YoY in Aug-2021 as it continues to lose its market share as it stands at just 1 percent compared to 10 percent 3-years back.

  • 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.

  • Sales of POL products surge by 44pc in March

    Sales of POL products surge by 44pc in March

    KARACHI: The sales of petroleum products have climbed up by 44 percent year on year (YoY) in March 2021 due to low base of March 2020 as the government last year enforced lockdown that resulted in slowdown in sales volume.

    Analysts at Arif Habib Limited said that total petroleum and lubricant sales clocked-in at 1.49 million tons in March 2021, depicting a gigantic growth of 44 percent YoY (ex- furnace oil growth of 32 percent YoY and 4 percent MoM) and 6 percent MoM due to extra working days compared to February and low base of March 2020 given the incumbent government enforced a lockdown last year resulting in a slowdown in sales volumes.

     The growth in sales volumes is primarily attributable to: i) Economic growth driving retail fuel sales, ii) Surge in trade activity (exports and imports) and better agricultural yields resulting in higher sales of HSD, iii) double digit growth in automobile offtake, iv) preference to private transport over public transport to reduce chances of contracting Covid-19, and v) strict surveillance on borders and various parts of country in order to control supply of illegal or dumped fuel from Iran.

    During 9MFY21, sales of total petroleum products increased by 15 percent YoY to 14.15 million tons against 12.27 million tons in 9MFY20.

    Dissection of data revealed that major contribution to growth came from HSD and FO with offtake undergoing a jump to 5.38 million tons and 2.30 million tons, up by 17 percent and 43 percent YoY against 4.60 million tons and 1.61 million tons in SPLY.

  • Sales of petroleum products grow by 9 percent in seven months

    Sales of petroleum products grow by 9 percent in seven months

    KARACHI: The sales of petroleum products have posted a 9 percent growth during the first seven months of the current fiscal year mainly due to increasing economic activities and trade.

    The sales of oil market companies (OMCs) increased to 11,269,000 tons during July – January of 2020/2021 as compared with 10,309,000 tons in the corresponding period of the last fiscal year, showing an increase of 9 percent.

    Analysts at Taurus Securities attributed the increase in sales of POL products to increasing economic activity and trade compared to last year as well as the government’s efforts at reducing sale of HSD in the black market.

    The sale of furnace oil posted a 36 percent growth to 1,915,000 tons during the first seven months of the current fiscal year as compared with 1,413,000 tons in the corresponding period of the last fiscal year.

    The analysts attributed the significant increase to the shortage for LNG and demand for furnace oil by the power sector.

    The analysts said that on the contrary, POL sales registered a decline of 5 percent Month on Month (MoM). The demand for high speed diesel (HSD) and motor spirit wavered on a MoM basis, down 13 percent and 5 percent, respectively, as economic and construction activity decelerated during winters.

    The sales of Pakistan State Oil (PSO) for the month posted a drop of 4 percent wherein Year on Year (YoY) sales increased by 12 percent.

    APL’s sales increased 5 percent MoM mainly due to growth in FO sales by 38 percent YoY. 1MFY21 sales declined 2 percent.