November 2, 2021 (MLN): The overall sales volume of the Oil and Marketing industry has increased by 17% YoY to stand at 1.99MTs during the month of October’21 as compared to 1.69MTs in the same month a year ago. This was the highest monthly sales after May 2018 and the 5th consecutive month that sales were above 1.9MTs.
However, on a monthly basis, the sale of Petroleum and Lubricants remained dull as it inched up by 1% from 1.96MTs in the previous month due to a 19% and 5% decline in Furnace Oil (FO) and Motor Spirit (MS) demand. The decline in FO sales was attributed to lower demand from the power sector due to off-peak season and restoration of gas supply from GasPort LNG terminal. However, High-Speed Diesel (HSD) volumes increased by 18% MoM.
Despite price hikes, the YoY growth in industry sales was largely supported by a surge in economic activity amid higher exports, imports, and growth in LSM on account of rising demand from both local and foreign consumers, a report by Arif Habib Limited said.
Besides, higher HSD demand from the Agriculture sector, robust growth in automobile sales numbers, rising tourism in Pakistan, and higher reliance on FO-based power plants also boosted the industry’s sales volume.
Cumulatively, during 4MFY22, sales of total petroleum products jumped by 22% YoY to 7.85MTs against 6.44MTs in the same period last year.
Category-wise, HSD, MS and FO all posted double-digit growth of 25%, 12% and 12% YoY during Oct’21 with offtake undergoing a jump to 0.84MTs, 0.77MTs and 0.33MTs respectively. This takes the cumulative 4MFY22 sales of HSD, MS and FO to 2.93MTs, 3.11MTs and 1.6MTs, up by 26%, 13% and 32% YoY respectively.
The company-wise analysis demonstrates that Pakistan State Oil Company Limited (PSO) continued to lead the volumetric growth chart by posting massive 35% YoY growth in sales of petroleum products in Oct’21, contributed by strong sales growth of HSD, MS and FO by 46%, 32% and 23% YoY, respectively.
This growth was followed by SHEL, as its sales volume surged by 22% YoY mostly contributed by strong sales growth of MS and HSD, up by 11% and 38% respectively.
However, HASCOL and BYCO witnessed a sales contraction of 73% and 11% YoY respectively due to a significant decline in sales volumes of MS and HSD. Likewise, APL also followed suit and recorded a decline of 3% YoY, in Oct’21, mainly on the back of a 42% YoY decline in FO volumes.
With regards to market share, PSO turned out to be a major winner as it managed to expand its market share by 5ppt YoY to 52% compared to 47% in 4MFY21.
Whereas the market share of APL and SHEL remained stable at 9.3% and 7.5%. However, the market share of HASCOL and Others shrank by 3.4% and 1% YoY to 1.5% and 30% respectively in 4MFY22 against 4.9% and 31% in 4MFY21.
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