Nasheed Malik of Topline Securities claims that since February-April 2020, there have been 35 months with a lower monthly sales figure.
The country’s overall sales of oil products were constrained by high oil prices, a sharp decline in auto sales, low power generation, and an economic slowdown. Sales of oil products fell by 9% in March and by 21% in the first nine months of the current fiscal year (9MFY23).
Nasheed Malik of Topline Securities claims that since February-April 2020, there have been 35 months with a lower monthly sales figure.
Sales of oil-related products totaled 1.1 million tonnes in March of this year, down from 1.22 million tonnes in February and 1.82 million tonnes in March of last year. In 9MFY23, total sales decreased from 16.26 million tonnes in the same period of the previous year to 12.80 million tonnes.
However, sales of petrol increased marginally by 1% in March to 0.56 million tonnes from 0.55 million tonnes in February but remained 28% below 0.77 million tonnes in March 2022. In 9MFY23, total petrol sales decreased by 16% from 9MFY22 to 5.59 million tonnes from 6.68 million tonnes.
The sales of diesel fell by 17 percent in March to 0.40 million tonnes from 0.48 million tonnes, but otherwise remained flat at 4.82 million tonnes in 9MFY23, down 24 percent from 6.38 million tonnes in the same period last fiscal year.
Diesel sales in March were also 43 percent lower than the 0.69 million tonnes that were sold in the same month last year. Sales of furnace oil plunged sharply by 28 percent to 0.09 million tonnes in March from 0.12 million tonnes in February due to low demand for power generation.
Sales of furnace oil plunged sharply by 28 percent to 0.09 million tonnes in March from 0.12 million tonnes in February due to low demand for power generation.
When compared to 0.28 million tonnes in the same month last year, sales in March were down 70%. From 2.67 million tonnes in the same period last fiscal year to 1.79 million tonnes in 9MFY23, total sales of furnace oil decreased by 33%.
According to Mr. Malik, Pakistan State Oil (PSO) saw a 10 percent month-over-month (MoM) and a 44 percent year-over-year (YoY) decline in sales, while its market share fell from 52 percent to 49 percent in March of last year.
Attock Petroleum’s (APL) sales decreased by 1% MoM and 30% YoY. Its market share in March was 10%, up from 9% in the corresponding month of the previous year. Shell Pakistan‘s sales decreased by 38 percent year over year and by 15 percent MoM.
Its market share in March of both this year and last year was 8%. Following the start of the holy month of Ramazan in the final week of March, Mr. Malik claimed that a higher inflationary environment, particularly the prices of petrol and diesel, had a significant impact on demand. He predicted that the overall slowdown in the economy would cause oil sales in FY23 to decline by 20–25 percent YoY.