Petroleum products sales surge amid economic recovery

KARACHI: Oil marketing companies’ sales jumped 21 percent in November 2020 as compared to the same month last year as petroleum demand is picking up amid economic recovery. However on sequential basis petroleum consumption inched up one percent as partial lockdown was imposed amid second wave of the pandemic.

As per the latest numbers revealed by Oil companies Advisory Committee (OCAC), Oil Marketing Companies (OMC) sales during 5MFY21 (July-November 2020) increased 11 percent to 8.1 million tons.

Major contributors during the period were Motor Spirit (MS) and High Speed Diesel (HSD) standing at 3.4 million tons and 3.1 million tons, respectively. Whereas, demand for Furnace oil (FO) boosted 31 percent, which led the volumetric upsurge in 5MFY21.

“This volumetric growth during 5MFY21 is primarily attributed to the trade revival and rolling up demand for the automobile sector,” Muhammad Rafay at Pearl Securities said.

Similarly, on monthly basis, sales volumes remained almost flat to clock in at 1.7 million tons cushioned by the sales of MS and HSD adding 693,000 tons and 802,000 tons in November 2020, respectively.

Pakistan State Oil (PSO) volumes posted an upturn of 10 percent to 3.8 million tons in 5MFY21 where HSD, up 19 percent, and MS, up 13 percent, being the key contributors. Whereas, the overall sales remained elevated during November in which HSD added the most reaching at 390,000 tons, an increase of 28 percent. On a yearly basis, volumes enhanced by 15 percent to 762,000 tons compared with 665,000 tons in November 2019. Moreover, PSO enjoyed market share of 44 percent in November.

Attock Petroleum Limited (APL) volumes remained almost flat during 5MFY21 to 773,000 tons. On monthly basis, company’s sales volume fell 16 percent to 142,000 tons compared with 169,000 tons in October 2020. APL sales volumes decreased 4.0 percent in November 2020 as compared to 149,000 tons in November 2019.

Hascol Petroleum Limited (HASCOL) sales volumes surged 9.0 percent to 94,000 tons in November as compared to 86,000 tons in October. On a cumulative basis, HASCOL’s volumes decreased 4.0 percent to 410,000 tons in 5MFY20.

Shell Pakistan Limited (SHEL) volumes continued the upward trend and witnessed a growth of 33 percent to 137,000 tons in November 2020 compared with 103,000 tons in November 2019. On a cumulative basis, the sales of SHEL remained flat in 5MFY21.

“The monthly consumption reflects the demand revival for fuel. Moreover, the government has decided to leave the price of petrol, kerosene, and light diesel unchanged till December 15, to provide maximum relief to the public,” Rafay said.

“Meanwhile, HSD prices have been increased by Rs4/litre owing to the increase in International price of HSD. This bi-monthly price revision is boosting the overall industry performance. Going forward, we expect the industry volumes to make a new high in lieu with the upcoming Govt. projects, demand from IPPs and higher automobile sales. Also, the second wave of Covid-19 is likely to restrict the growth in sales volumes in case of any lockdown or restriction on trading and business activities in the country”.

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