Pakistan Petroleum’s sales declined by 19% in 7MFY23.

KARACHI: Sales of petroleum products in Pakistan have declined by 19% during the first seven months (July-January) of 7MFY23 FY2022-2023.

During 7MFY23, sales of total petroleum products declined by 19% YoY to 10.47 million tonnes compared to 12.91 million tonnes in the same period last year.

Product-wise data showed declines in all categories. Analysts at Arif Habib Ltd said that purchases of petrol, high speed diesel (HSD) and furnace oil (FO) were 4.48 million tonnes, 3.95 million tonnes and 1.59 million tonnes respectively.

Total petroleum sales are pegged at 1.44 million tonnes in January 2023, reflecting a 20% year-on-year decline due to i) rising petroleum prices, ii) economic slowdown, iii) steep decline in automobile sales, and iv ) based on low FO-power generation

MS showed a decline of 13% in 2023, settling at 0.65 million tonnes in January 2023. Similarly, high-speed diesel (HSD) volume declined by 21 percent year-on-year to 0.58 million in January 2023.

Additionally, furnace oil (FO) sales volumes declined 45% year-on-year to 0.14 million tonnes in January 2023. On a MoM basis, petroleum sales are expected to grow by 8% during January 2023 on the back of an expected increase in petroleum prices. Therefore, the volume of MS, HSD, and FO increased by 4%, 12%, and 16% MOM, respectively.

A company-wise analysis shows that PSO’s take fell by 18% year-on-year in January 2023, driven by a 23%, and 85% year-on-year decline in HSD and FO sales, respectively.

Whereas, PSO’s MS sales showed a year-on-year growth of 1 percent in January 2023. Similarly, sales of HASCOL, APL and SHEL declined by 11 percent, 13 percent, and 15 percent year-on-year, respectively.

During 7MFY23, PSO managed to increase its market share by 1.2 percentage points to 51.1 percent as against 49.9 percent in 7MFY22.

Meanwhile, the market share of APL and SHEL remained stable at 9.2 percent, and 7.6 percent year-on-year respectively. Whereas, HASCOL’s market share improved to 1.8 percent (1.5 percent in SPLY) in 7MFY23. However, the market share of other OMCs fell to 30.4% in 7MFY23 as against 31.5% in 7MFY22.