Hi Everyone! I hope you are all doing well. Welcome back to another blog. In this blog, we will talk about, May See Drop in Petroleum Sales. Petroleum sales in May 2023 reached 1.30 million tons, dropping by 40 percent compared to the previous year. This decline was caused by higher petroleum prices, a sluggish economy, the presence of illegally imported petroleum products from Iran, and a decrease in power generation using Furnace Oil (FO).
Arif Habib Limited (AHL) reported a significant drop in MS offtake, falling by 24 percent compared to the previous year, reaching 0.60 million tons in May 2023. High-Speed Diesel (HSD) volumes also declined by 36 percent year-on-year, reaching 0.54 million tons in May 2023. Additionally, sales volumes of Furnace Oil (FO) experienced a substantial 80 percent year-on-year decrease in May, totaling 0.09 million tons.
Petroleum sales in May increased by 11 percent compared to the previous month. This growth was mainly due to increased consumption of high-speed diesel (HSD) during the harvesting season and a renewed demand for motor spirit (MS) and HSD due to lower prices. Specifically, the volume of MS rose by 4 percent month-on-month, while the volume of HSD increased by 18 percent.
Sales of FO increased by 26 percent compared to the previous month due to higher demand for FO-based power generation during the start of the summer season.
In the 11 months of FY23, the sales of all petroleum products dropped by 26 percent compared to the same period last year. The total sales volume was 15.26 million tons, down from 20.62 million tons in the previous year. Sales declined in all categories, with 6.78 million tons of motor spirit (MS), 5.83 million tons of high-speed diesel (HSD), and 1.96 million tons of furnace oil (FO) being sold.
PSO’s sales decreased by 51 percent compared to the previous year in May 2023. This drop was due to a decline in sales of MS, HSD, and FO by 33 percent, 40 percent, and 96 percent, respectively. Similarly, APL and SHEL experienced a decrease in sales by 42 percent and 45 percent, respectively. On the other hand, HASCOL’s sales saw a massive eight-fold increase compared to the previous year.
In the 11 months of FY23, PSO experienced a 1.1 percent decrease in market share, dropping to 50.2 percent from 51.3 percent in the same period of FY22. On the other hand, SHEL maintained a stable market share of 7.6 percent year on year.
In the 10-month period of FY23, APL and HASCOL experienced a growth in their market share, reaching 9.4 percent (compared to 9.2 percent in the same period last year) and 2.3 percent (compared to 1.2 percent in the same period last year) respectively. During the same period, other oil marketing companies (OMCs) maintained their market share at 30.4 percent, slightly lower than the 30.5 percent they held in the same period of the previous fiscal year (11MFY22).