Total petroleum product sales in Pakistan were 1.41 million tonnes in August 2023, an 8% decrease year on year due to an economic downturn and a drop in oil-based power generation.
The drop in sales is “primarily due to a 64% YoY drop in Furnace Oil (FO) sales due to lower reliance on FO-based power generation due to the addition of new local coal-based power plants,” according to a letter from Arif Habib Limited (AHL).
FO sales fell by 0.12 million tonnes in August 2023, compared to 0.33 million tonnes in the same time last year (SPLY).
However, sales of MS (petrol) inched up 5% YoY, clocking in at 0.67 million tons in August. The volume of High-Speed Diesel (HSD) also improved by 11% YoY, settling at 0.55 million in August 2023.
The increase comes “amid the absence of heavy rainfall as compared to last year,” said AHL.
However, on a month-on-month basis, POL products offtake witnessed an increase of 4% during August, “due to an increase in fortnightly pricing trend during the month,” said AHL.
Volumes of MS inched up by 2%, whereas HSD offtake increased by 11%. Meanwhile, FO sales registered a decline of 18% MoM.
Total petroleum product sales fell by 7% year on year in the first two months of FY24, to 2.76 million tonnes, compared to 2.97 million tonnes in SPLY.
According to product data, the reduction was led by a 61% drop in FO sales to 0.26 million tonnes. Meanwhile, MS and HSD offtake increased by 8% and 11% to 1.33 million tonnes and 1.04 million tonnes, respectively.
PSO’s offtake fell 8% year on year in August 2023, owing mostly to an 86% year-on-year reduction in FO sales. In contrast, MS and HSD offtake increased by 15% and 32%, respectively, year on year.
Similarly, sales at Attock Petroleum Limited (APL) and Shell Pakistan Limited (SHEL) fell by 2% and 11% year on year, respectively, due to a drop in total product sales.
Hascol Petroleum Limited (HASCOL) sales, on the other hand, increased by 27% year on year.
