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Petroleum Sales Fall by 4% In First Month of 2024

Petroleum sales during January 2024 clocked in at 1.38 million tons, depicting a decline of 4 percent YoY.

According to Arif Habib Limited, the reduction in sales comes on the back of higher petroleum product prices, and a slowdown in the economy.

The sales of MS dropped by 5 percent in January 2024, clocking in at 0.61 million tons. Similarly, HSD sales volumes also decreased by 12 percent YoY, reaching 0.51 million tons during the same period. On the other hand, furnace oil (FO) sales climbed up by 28 percent YoY to 0.18 million tons in January.

On an MoM basis, petroleum sales registered a growth of 12 percent in January 2024 on account of a reduction in the price of MS and HSD and the resumption of demand for FO-based power generation due to a fall in hydel power generation in peak winters. The sales of MS jumped up by 8 percent MoM.

Likewise, the offtake of FO surged by 2x MoM in January 2024. Whereas, HSD dispatches remained stable on an MoM basis in the same period.

During 7MFY24, total sales of petroleum products plummeted by 13 percent YoY to 9.07 million tons vis-à-vis 10.47 million tons in SPLY. Product-wise data shows a reduction in all categories; the volumetric sales of MS, HSD, and FO clocked in at 4.18 million tons, 3.67 million tons, and 0.75 million tons, respectively.

Company-wise

Company-wise, PSO sales plummeted by 7 percent YoY in January 2024, which is due to a decrease in sales of MS and HSD by 11 percent and 13 percent, respectively, while FO dispatches displayed a surge of 2x YoY. In addition to this, the offtake of SHEL and HASCOL witnessed a decline of 15 percent and 11 percent YoY, respectively.

APL being an outlier posted a growth of 9 percent YoY in January 2024.

During 7MFY24, petroleum sales of APL, PSO, and SHEL declined by 4 percent, 16 percent, and 19 percent YoY, respectively. Whereas, HASCOL’s offtake witnessed a growth of 21 percent YoY in 7MFY24.
During the seven months, PSO’s market share dropped by 1.3 percent to 49.7 percent vis-à-vis 51.1 percent in 7MFY23.

The market share of SHEL dropped by 0.5 percent arriving at 7.1 percent YoY in 7MFY24. Moreover, the market share of APL and HASCOL in 7MFY24 increased to 10.3 percent (9.3 percent in SPLY) and 2.5 percent (1.8 percent in SPLY), respectively. Meanwhile, the market share of other OMCs remained stable at 30.4 percent in 7MFY24.

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