August 3, 2021 (MLN): The Oil and Marketing Companies (OMCs) continued to post notable growth as in the month of July’21, OMCs witnessed a surge of 17% YoY to clock in at 1.94 MTs, compared to 1.65 MTs in July’20.

This increment in the sales volume is mainly owing to the accelerated economic activities i.e, record surge in automobile sales, substantial growth in LSM which stimulated domestic and international demand, and notable uptick in tourism activities that fueled the demand of petroleum and lubricants during the review period.

Not to forget, the strict surveillance at borders to control the smuggling of dumped POL products has also supported to enlarge the volumes, a report by Arif Habib Limited noted.

To note, during the same month last year, the performance of energy industry of Pakistan remained mediocre owing to the crippling impact of strict lockdown amid Covid-19 pandemic.  

Contrary to the previous month’s meagre growth, the Oil and Marketing Companies (OMCs) registered a modest uptick in total sales volume of the industry by 4% MoM compared to 1.86 MTs in June’21.

In the month of July alone, the sale of Furnace Oil (FO) reached to 0.37 MTs, depicting an upsurge of 17% MoM due to the supply shortage faced by LNG and increased demand from power sector.

According to a report by Topline Securities, dry docking and maintenance of ENGRO LNG terminal created shortage of LNG during the last days of June’21.  

The YoY growth in sales of OMCs is driven by FO and MOGAS demand which recorded a growth of 57% and 14% YoY to 0.37 MTs and 0.81 MTs respectively. Likewise, the demand for High-Speed Diesel (HSD) has also moved up by 7% YoY to 0.72 MTs in July’21.

However, on the sequential basis, the demand for HSD was dented by 4%, compared to the sales volume of 0.75 MTs in June’21.

Company wise, Pakistan State Oil (PSO) led the charts by reporting the colossal growth of 25% YoY in July, 21. FO remained the dominant contributor to the total sales of the company by 130% to 0.26 MTs. MOGAS also contributed by witnessing an uptick of 18% YoY sales.

In addition, the sales volume of SHEL moved up by 17% YoY in July’21 to clocked in at 0.14 MTs.

On the contrary, the other listed companies of the industry underperformed during the review period. For instance, Attock Petroleum Limited (APL) observed sales growth of 4% YoY while, the sales of HASCOL Petroleum dropped by 46% YoY owing to the low sales volume of MOGAS and HSD.

Going forward, PSO successfully grasp the biggest market share in the month of July’21, managed to expand its market by 3.54% YoY to 52% YoY from 48.5% YoY in the corresponding period last year.

Moreover, HASCOL, APL and SHEL’s market share dropped by 2.8%, 1.7% and 0.1% YoY to 2.5%, 8.3% and 7.4%, respectively.

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