KARACHI: The sales of petroleum products witnessed a decline of 24 per cent to clock-in at 3 million tonnes in the first two months of fiscal year 2023.
The decline in the sales came on the back of heavy rainfall across the country leading to floods and a massive surge in petroleum prices.
According to data by the Oil Companies Advisory Council (OCAC), the sales of Furnace Oil (FO) declined 22 per cent to reach 678,000 tonnes, Motor Spirit (MS) down 20 per cent to 1.2 million tonnes and High-Speed Diesel (HSD) sales witnessed a decline of 32 per cent to 94,000 tonnes. FO sales were down owing to lower power generation from FO run power plants as rains elevated hydel power generation.
However, on a monthly basis, the sales increased amid decline in the prices, resumption of schools and lesser public holidays in August.
In August, the cumulative sales notched up 6 per cent on a month-on-month basis to clock-in at 1.52 million tonnes, compared with 1.44 million tonnes in July.
MS sales increased to 637,000 tonnes, up 7 per cent, HSD showed a growth of 12 per cent to 496,000 tonnes while FO sales declined 7 per cent during the month under review.
On a yearly basis, FO sales registered a decline of 35 per cent, followed by MS which were down 13 per cent & HSD sales witnessed a decline of 26 per cent in August.
An analyst at Pearl Securities said that the heavy floods would further slow down demand in rural areas. Furnace oil sales slowdown show improved hydel flows amid heavy monsoon showers and lower electricity demand, he added.
“Going forward, we expect the volumes of MS and HSD to decline in the upcoming periods with higher petroleum prices particularly of retail fuels and weakening economic activity, slower agriculture growth, and falling auto sales amid rising inflation.”
“The government is likely to increase petroleum duty levy (PDL) on the petroleum prices which would slow down the demand for oil products. Therefore, we anticipate the oil sales to remain on the lower side in the second quarter of fiscal year 2023,” he said.
The total volumes of Pakistan State Oil (PSO) declined to 1.6 million tonnes, down 24 per cent in the first two months of fiscal year 2023, MS declined to 547,000 tonnes, down 23 per cent and HSD sales volumes decreased 465,000 tonnes, down 30 per cent on a year-on-year basis. The FO sales during the period also registered a decline of 26 per cent to 439,000 tonnes.
The company’s monthly sales increased 4 per cent on a monthly basis to 791,000 tonnes in August, as HSD sales remained flat with 232,000 tonnes and MS sales showed a growth of 12 per cent to clock-in at 289,000 tonnes. While the FO sales recorded a significant decline of 4 per cent to reach 214,000 tonnes in August
Likewise, on a yearly basis, PSO sales reported a decline of 23 per cent to 791,000 tonnes, compared with 1.02 million tonnes in the same month of last year.
The overall volumetric sales of Attock Petroleum Limited (APL) declined 18 per cent in the first two months of fiscal year 2023 to stand at 295,000 tonnes, as against 362,000 tonnes sold in the same period of last year.
The HSD sales declined 20 per cent to 90,000 tonnes and MS showed a decline of 15 per cent to 105,000 tonnes.
The company observed a growth of 8 per cent on a monthly basis to reach 154,000 tonnes in August, FO sales increased 29 per cent to 53,000 tonnes and MS sales displayed an increase of 9 per cent to 55,000 tonnes in August.
The sales of Shell Pakistan Limited (SHEL) witnessed a decline of 25 per cent standing at 210,000 tonnes in the first two months of fiscal year 2023.
During August, MS and HSD contributed 69,000 tonnes and 39,000 tonnes in total sales, respectively.
Shell observed a decline of 19 per cent in the sales to clock-in at 110,000 tonnes in August, compared with 136,000 tonnes in August 2021. The month-on-month sales of the company increased by 10 per cent during the month.
The Hascol Petroleum Limited (HASCOL) sales declined 24 per cent to stand at 49,000 tonnes in the first two months of fiscal year 2023, compared with 64,000 tonnes during the same period of last year.
The MS and HSD sales added 32,000 tonnes and 17,000 tonnes, respectively.
Likewise, in August, the volumes increased to 28,000 tonnes, up 78 per cent on a year-on-year basis where MS and HSD volumes clocked-in at 17,000 tonnes and 10,500 tonnes, respectively.
Similarly, on a monthly basis, the volumes elevated by 30 per cent as HSD recorded a notable growth of 74 per cent with 10,500 tonnes in August.
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