ISLAMABAD: The sales of petroleum products in Pakistan witnessed a sharp decline of 7% year-on-year (YoY) in December 2023, reaching 1.24 million tons, according to the latest data released by the Oil Companies Advisory Committee (OCAC).

The main reasons for the drop in sales were the surge in price of petroleum products, the economic slowdown, and the lower demand of furnace oil (FO) amid reliance on new coal-based power plants.

The sales of motor spirit (MS), also known as petrol, dropped by 8% YoY in December 2023, clocking in at 0.57 million tons. Likewise, high speed diesel (HSD) sales volumes also decreased by 2% YoY, reaching 0.51 million tons during the same period. Whereas, furnace oil (FO) sales plunged by 36% YoY to 0.08 million tons in December 2023.

On a month-on-month (MoM) basis, petroleum sales reported a fall of 10% in December 2023. The sales of MS remained unchanged at 0.57 million tons. However, HSD dispatches plummeted by 21% MoM owing to peak demand in November 2023 for Rabi season. Likewise, offtake of FO declined by 4% MoM in December 2023.

During the first half of fiscal year 2024 (1HFY24), sales of total petroleum products reported a decline of 15% YoY to 7.68 million tons compared to 9.03 million tons in the same period last year (SPLY). Product-wise data showed a reduction in all categories; the volumetric sales of MS, HSD, and FO clocked in at 3.57 million tons, 3.16 million tons, and 0.56 million tons, respectively.

Among the oil marketing companies (OMCs), Pakistan State Oil (PSO)’s sales declined by 5% YoY in December 2023, which is on account of fall in sales of MS, HSD, and FO by 4%, 8%, and 11%, respectively. Shell Pakistan Limited (SHEL) witnessed YoY drop of 18%. Meanwhile, Attock Petroleum Limited (APL) and Hascol Petroleum Limited (HASCOL) showcased a jump in sales of 6% YoY each.

During 1HFY24, petroleum sales of PSO, SHEL, and APL declined by 17%, 19%, and 6% YoY, respectively. On the flip side, HASCOL’s offtake witnessed a growth of 27% YoY in 1HFY24.

During 1HFY24, PSO’s market share dropped by 1.3% to 50.1% vis-à-vis 51.4% in 1HFY23. Whereas, the market share of SHEL dropped by 0.4% recording at 7.1% YoY in 1HFY24. Moreover, the market share of APL and HASCOL in 1HFY24 increased to 10.1% (9.2% in SPLY) and 2.6% (1.8% in SPLY), respectively. Meanwhile, the market share of other OMCs remained stable at 30.01% in 1HFY24.

Pakistan’s petroleum products sales decline 11 percent in FY20