Petroleum Sales Drop to Lowest Level in 6 Months

Petroleum products sales in April 2024 settled at 1.10 million tons, showcasing a decline of 6 percent YoY. According to Arif Habib Limited, the reduction in sales comes on the back of higher availability of smuggled petroleum products from Iran, an increase in the price of MS, and lower dependency on FO-based power plants. Petroleum sales are at their lowest level in 6 months, according to Topline Securities. The dispatches of MS depicted a decrease of 9 percent in April 2024, settling at 0.53 million tons. Similarly, furnace oil (FO) sales plunged by 59 percent YoY to 0.03 million tons in April 2024. Whereas, HSD sales volumes witnessed a growth of 2 percent YoY, reaching 0.47 million tons during the same period amid a fall in the price of HSD. On an MoM basis, petroleum sales plummeted by 4 percent during April 2024 due to aforementioned reasons. The sales of MS descended by 7 percent MoM. Likewise, FO dispatches plunged by 33 percent MoM. Meanwhile, the offtake of HSD witnessed an uptick of 2 percent MoM in March 2024. During 10MFY24, total sales of petroleum products reduced by 11 percent YoY to 12.44 million tons vis-à-vis 13.97 million tons in SPLY. Product-wise data shows a fall in all categories; the volumetric sales of MS, HSD, and FO clocked in at 5.83 million tons, 5.05 million tons, and 0.87 million tons, respectively. On a company-wide basis, the dispatches of PSO tumbled by 3 percent YoY in April 2024, owing to a fall in sales of MS, HSD, and FO by 7 percent, 4 percent, and 22 percent YoY, respectively. Similarly, sales of PSO, SHEL, APL, and HASCOL reduced by 3 percent, 7 percent, 18 percent, and 23 percent YoY, respectively during April 2024. During 10MFY24, petroleum sales of APL, PSO, and SHEL by 5 percent, 12 percent, and 15 percent YoY, respectively. On the other hand, HASCOL climbed up by 5 percent YoY. During 10MFY24, PSO’s market share dropped by 0.5 percent to 50.1 percent vis-à-vis 50.5 percent in 10MFY23. Whereas, the market share of SHEL dropped by 0.4 percent arriving at 7.3 percent YoY in 10MFY24. Moreover, the market share of APL and HASCOL in 10MFY24 increased to 10.0 percent (9.4 percent in SPLY) and 2.5 percent (2.1 percent in SPLY), respectively. Meanwhile, the market share of other OMCs remained stable at 30.2 percent in 10MFY24.