August 4, 2020 (MLN): The overall volumetric sales of Oil and Marketing Companies (OMCs) in Pakistan increased by 3% MoM in July 2020 to stand at 1.66 million tons against 1.62 million tons in June 2020.
On yearly basis, the total industry sales improved by 3% YoY when compared to 1.61 million tons in July 2019.
According to the report by Topline Securities, the improvement in MoM Fuel demand was mainly on the back of overall pick-up in economic activity following improvement in COvid-19 situation and the higher demand of Furnace Oil (FO) as low FO prices resulted in higher FO-based power generation.
Category-wise, demand of motor fuel (MO) improved 9% YoY and declined by 1% MoM to 0.72 million tons, while the HSD which is key fuel for transportation/freight, its demand increased by 16% YoY and dropped by 10% MoM to 0.68 million tons.
On the other hand, sales volumes of furnace oil saw a significant rise of 109% MoM and fall of 21% YoY to stand at 0.24 million tons.
On a cumulative basis, the overall sale of OMCs during 7MCY20 were recorded at 9.32 million tons as compared to 10.75 million tons in the corresponding period of last year, showing a decline of 13% YoY on account of slowdown in economic activity and impact of covid-19 outbreak. FO sales during 7MCY20 saw a notable decline of 47% YoY, while sales of HSD and MS saw a meagre fall of 4% and 3% YoY respectively.
Company-wise, PSO sales have decreased the most in July’20 by 4% MoM as HASCOL and SHEL regained their market shares after lower sales in the previous month. To recall that in Jun-2020, PSO had gained market on the back of adequate availability of petroleum products as compared to its peer companies who faces shortage due to lower imports.
On the contrary, HASCOL has posted an increase of 26% MoM and 27% YoY in sales volume with market share improved from 4.3% to 6.1% in HSD and from 5.3% to 6.7% in MS.
Likewise, SHEL’s total volume during the month of July’20 surged by 15% MoM and declined by 9% YoY with market share in MS increased by 0.8% and in HSD by 2.2%.
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