The sales of petroleum products in Pakistan witnessed a sharp decline of 40% year-on-year (YoY) in May 2023, reaching 1.30 million tons, according to the latest data released by the Oil Companies Advisory Council (OCAC).

The drop in petroleum sales was attributed to various factors, such as the surge in petroleum prices, the slowdown in the economy, the availability of smuggled petroleum products from Iran, and the reduction in furnace oil (FO)-based power generation.

Among the major products, motor spirit (MS) or petrol recorded a fall of 24% YoY to 0.60 million tons in May 2023, while high-speed diesel (HSD) registered a decline of 36% YoY to 0.54 million tons. Moreover, FO sales plummeted by 80% YoY to 0.09 million tons in May 2023.

On a month-on-month (MoM) basis, however, petroleum sales recorded a growth of 11% in May 2023, mainly due to the harvesting season, which led to higher consumption of HSD, and the revival of demand for MS and HSD amid drop in prices. MS and HSD sales increased by 4% and 18% MoM, respectively. FO sales also climbed up by 26% MoM due to the increase in demand for FO-based power generation amid the commencement of summer season.

During the first eleven months of fiscal year 2022-23 (11MFY23), sales of total petroleum products depicted a tumble of 26% YoY to 15.26 million tons compared to 20.62 million tons in the same period last year (SPLY). All product categories showed a decline; MS, HSD, and FO clocked-in at 6.78 million tons, 5.83 million tons, and 1.96 million tons, respectively.

Among the oil marketing companies (OMCs), Pakistan State Oil (PSO) witnessed the steepest decline of 51% YoY in its offtake in May 2023, mainly due to the decline in sales of MS, HSD, and FO by 33%, 40%, and 96% YoY, respectively. Likewise, sales of Attock Petroleum Limited (APL) and Shell Pakistan Limited (SHEL) reduced by 42% and 45% YoY, respectively. On the other hand, Hascol Petroleum Limited (HASCOL) reported a colossal jump of 8.0 times YoY in its offtake in May 2023.

During 11MFY23, PSO’s market share declined by 1.1% to 50.2% compared to 51.3% in 11MFY22. Whereas, market share of SHEL remained stable at 7.6% YoY. Meanwhile, market share of APL and HASCOL in 11MFY23 increased to 9.4% (9.2% in SPLY) and 2.3% (1.2% in SPLY), respectively. The market share of other OMCs settled at 30.4% in 11MFY23 compared to 30.5% in 11MFY22.

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