Pakistan’s overall petroleum products’ sales decline 36% to 1.1mn tons

KARACHI: Pakistan’s overall petroleum products sales by oil marketing companies (OMCs) during April 2020 declined by 36 percent YoY to 1.1 million tons as economic activities declined significantly across country on the back of COVID-19 concerns, latest numbers issued by Oil companies Advisory Committee (OCAC) suggests.

“As per market sources, oil consumption witnessed a rising trend since the government opted for a smart lockdown and issued Standard Operating Procedures (SOP) for construction and export oriented industries. However, if lockdown is extended further then this will be negative for May 2020 sales,” an analyst at Arif Habib Limited (AHL) said.

On a sequential basis, however, petroleum products volumes increased by 6.0 percent in April driven by 43 percent increase in high speed diesel (HSD) sales on the back of start of harvesting season and partial ease in lockdown in the country, and 9.0 percent increase in furnace oil (FO) sales. On the other hand, motor spirit sales declined by 19.0 percent in April on sequential basis.

Cumulatively for 10MFY20 (July 2019-April 2020), petroleum, oil, lubricants (POL) products’ sales declined by 13 percent clocking in at 13.3 million tons as compared to 15.3 million tons during same period last year.

Pakistan State Oil (PSO) volumes clocked in at 389k tons in April 2020, a monthly increase of 2.0 percent driven by 52 percent increase in HSD volumes, as HSD demand grew due to start of harvest season and partial ease in lockdown in the country. On the other hand, Motor spirit and FO volumes decreased by 28 percent and 39 percent, respectively. On yearly basis PSO’s volumes were down by 47 percent, whereby the company experienced a decline in sales of all products. The company’s market share also declined during the month, clocking in at 36 percent in April 2020 as compared to 44 percent in April last year.

HASCOL’s sales volume in April 20 declined by 3.0 percent on monthly basis, whereby HSD sales decreased by 19 percent while, motor spirit and FO sales increased sequentially by 5 percent and 210 percent respectively. On a cumulative basis, HASCOL’s sales decreased by 49 percent in 10MFY20 to 884k tons as opposed to 1,728k tons in the same period last year.

Attock Petroleum Limited (APL) volumes decrease by 44 percent YoY during the month. In comparison to the previous month, total sales declined by 15 percent. The company’s market share for motor spirit, HSD and FO stood at 9.0 percent, 8.0 percent and 15 percent, respectively.

Shell Pakistan posted a decline of 42 percent YoY in April 2020. During the month the company’s market share in motor spirit and HSD clocked in at 9 percent and 8 percent, respectively as against 13 percent and 8 percent, last year in April.

“Amid oil price crash and decline in demand due to slowdown in economic activity across the country we have an underweight stance on the sector,” an analyst at BIPL Securities said.

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