Petroleum Sales Down 14% in August 2024

Pakistan’s Oil Marketing Companies (OMCs) sales reached 1.21 million tons in August 2024. This represents a 14 percent YoY decrease, due to the monsoon season, and a 2 percent MOM rise, due full working month, unlike July which was affected due to the Muharram Holidays, Topline Securities said in a review. Total sales for 2MFY25 totaled at 2.4 million tons, a 12 percent YoY decline compared to 2.8 million tons in 2MFY24. Excluding furnace oil (Ex-FO) sales in August 2024 were 1.2 million tons, reflecting an 11 percent YoY decrease but a 3 percent MoM rise. For 2MFY25, ex-FO sales totaled 2.3 million tons, a 9 percent YoY decline. Product-wise, Motor Spirit (MS) sales saw a decline of 7 percent YoY but a rise of 6 percent MoM to 625,000 tons in August 2024. This was due to the reduction in petrol prices by Rs. 14.64 per liter to Rs. 260.96 per liter and the resumption of activities i.e. start of school season and the factors mentioned above. High-Speed Diesel (HSD) saw a 17 percent YoY and a 2 percent MoM fall. The fall is due to the monsoon season. FO sales for Aug 2024 fell by 45 percent YoY and 17 percent MoM to 65,000 tons. This decrease is due to lower power generation from FO-based power plants. Among the listed entities, Attock Petroleum (APL) sales clocked in at 114,000 tons in August 2024, a 24 percent YoY fall primarily led by a 63 percent YoY fall of FO sales and a 12 percent MoM rise due to a 37 percent rise in FO sales. Pakistan State Oil (PSO) saw a fall of 27 percent YoY and 3 percent MoM to 528,000 tons in Aug 2024, PSO’s market share in HSD and MS clocked in at 44.1 percent and 40.3 percent, down 192bps and 102bps MoM, respectively in August 2024, PSOS overall market share has fallen from 46 percent in July 2024 to 43 percent in August 2024. Shell Pakistan (SHEL) saw a 6 percent YoY fall and a 7 percent MoM rise to 92,000 tons. HASCOL sales clocked in at 42,000 tons, up 18 percent YoY and 9 percent MoM. The federal government set a Petroleum Development Levy (PDL) collection target of Rs. 1.28 trillion for FY25 of which Rs. 166 billion (13 percent) has been collected in 2MFY25.