August 1, 2022 (MLN): Pakistan’s oil marketing companies (OMCs)’ sales declined in July for the second consecutive month by 26% MoM to 1.44 million tons (MTs), the lowest level since Feb 2021.
This was mainly led by lower High-Speed Diesel (HSD) and Motor Spirit (MS) sales which declined by 38% and 15% MoM to 0.44 MTs and 0.59MTs respectively, majorly due to the higher MS and HSD prices in July'22, after the incumbent government removed the fuel subsidies, passing on the full cost of supply impacts to domestic consumers.
While sales of Furnace Oil (FO) also witnessed a fall of 23% MoM to stand at 0.35 MTs in July'22.
On yearly basis, oil sales dipped by 26% YoY from 1.9 MTs in July 2021. Product-wise, MS, HSD and FO volumes dropped by 27%, 38%, and 5% YoY respectively from 0.8 MTs, 0.72 MTs, and 0.37 MTs in the same month a year earlier.
Company-wise analysis showed that Pakistan State Oil (PSO) witnessed a 27% MoM and 25% YoY decline in sales volume to 0.76 MTs in July. Whereas Attock Petroleum (APL) and Shell Pakistan (SHEL) sales worsened by 29% and 37% MoM to 0.14 MTs and 0.1 MTs respectively.
On yearly basis, APL and SHEL reported a 13% and 30% YoY decline in sales volume during July’22.