Oil sales up 12 percent to 9.8 million tons in first half

KARACHI: Oil sales increased 12 percent to clock in at 9.8 million tons in the first half of the current fiscal year (1HFY21), mostly owing to the reopening of economy after the first wave of the COVID-19 pandemic, latest data issued by oil companies showed on Monday.

According to number released by Oil Companies Advisory Committee (OCAC), major contribution to this upsurge came from Motor Spirit (MS) and High Speed Diesel (HSD) standing at 4.1 million tons (up 8 percent) and 3.7 million tons (up 13 percent), respectively. Moreover, an upsurge in the Furnace Oil (FO) demand by Independent Power Producers (IPPs) increased its sales volume by 38 percent in 1HFY21.

“This volumetric growth during 1HFY21 is primarily accredited to the escalating trade activities, higher vehicles on road, and increasing power demand,” Abdul Rafay at Pearl Securities said.

Meanwhile, on sequential basis, sales volumes shrank 7.0 percent to clock in at 1.6 million tons in December 2020 as sales of MS and HSD decreased to 673,000 tons (down 3.0 percent) and 622,000 tons (down 22 percent), respectively. Furthermore, during December, industry sales volumes witnessed a spike of 16 percent to 1.6 million tons compared with 1.4 million tons in December last year, whereas, HSD, MS, and FO volumes continued to increase by 13 percent, 5 percent and 108 percent in December.

Pakistan State Oil (PSO) sales volumes increased 12 percent to clock in at 4.5 million tons in 1HFY21. On a yearly basis, volumes increased 22 percent to clock in at 721,000 tons in December 2020 compared with 592,000 tons in December 2019. PSO’s overall sales fell 5.0 percent during the month of December 2020 in which HSD sales plunged 24 percent and FO sales surged 93 percent reaching at 297,000 tons and 105,000 tons, respectively. Moreover, PSO also enjoyed the highest market share of 45 percent in December 2020. Attock Petroleum Limited (APL) volumes remained almost flat during 1HFY21 to stand at 900,000 tons. On a yearly basis, APL volumes decreased 16 percent in December 2020 as against 151,000 tons in December 2019.

However, on sequential basis, APL’s volume dropped 11 percent to clock in at 127,000 tons compared with 142,000 tons in November 2020.

Hascol Petroleum Limited (HASCOL) sales volumes declined 8.0 percent to stand at 483,000 tons in 1HFY21 verses 524,000 tons in same period last year.

Shell Pakistan Limited (SHEL) volumes remained almost flat in 1HFY21 to clock in at 739,000 tons. Whereas, on a monthly basis, sales decreased 4.0 percent reaching 131,000 tons in December as compared to 137,000 tons in November 2020.

“The OMC sector is likely to stay upbeat in FY21 in lieu with the continuous volumetric growth. However, the government has approved the hike of Rs2.31/liter and Rs1.8/liter in the prices of MS and HSD for January 2021, on bi-monthly basis, in line with the international oil price recovery,” Rafay added.

Going forward, analysts anticipate the industry to post better sales volumes owing to increasing import-export activities, higher vehicle sales, and demand from the power sector.

Furthermore, PSO has upgraded Pakistan’s diesel standard from Euro 2 to Euro 5 from January 01, 2020.