November 3, 2020 (MLN): With the fall in oil prices in international market and economic recovery, the demand for petroleum products witnessed an increase, as the overall sales of Oil and Marketing Companies (OMCs) during the month of October has shown a growth of 6.1% YoY to 1.69 MTs compared to 1.6 MTs in the same month of last year.
On monthly basis, OMCs’ volumetric sales jumped by 11% compared to 1.52 MTs in the month of September 2020.
The YoY growth in sales of OMCs is driven by Furnace Oil (FO) demand which improved by 46% YoY. As per the report by Topline Securities, the pickup in FO volumes is largely attributable to low FO prices resulting in higher FO-based power generation and overall uptick in economic activity following improvements in COVID-19 situation.
While the MoM growth in sales volume is linked to rebound in High-Speed Diesel (HSD) and Motor Spirit (MS) demand as their sales post the first monthly uptick since Jun’20, grow by 43% MoM and 7% MoM respectively.
Cumulatively, during 4MFY21, industry volumes surged 9%, accredited to surge in FO, HSD and MS sales which jumped by 33%, 8% and 6% YoY respectively.
Company- wise, BYCO posted the largest volumetric growth of 22% YoY in sales of petroleum products, followed by 10% YoY rise in Attock Petroleum Limited (APL)’s volume and 5% YoY increase in PSO volumes.
The increase in APL and PSO volumes is attributed to strong sales of FO which surged by 100% YoY for APL and 26% YoY for PSO.
On the other hand, Shell and Hascol witnessed dip in sales volume by 2% YoY and 29% YoY respectively mainly due to lower volumes of MS.
With regards to market share, PSO grasped the biggest market share of 45%, down by 1pps MoM, while HASCOL’s market share declined by 3ppts to 5%. On the other hand, SHEL, APL and BYCO maintained its market share at 8%, 10% and 5% in the month of October 2020 respectively.
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