Karachi, July 02, 2020: Pak Oil sales for Jun-2020 are likely to increase by 9 percent MoM as economic activities have picked up following government’s easing of COVID-19 related lockdowns.
The same is also up 19 percent YoY owing to low prices (reportedly smuggling of petroleum products into Pakistan was also very nominal as price differential had substantial reduced) and backlog of orders (because of the anticipation of price cut for Jun-2020).
Motor Spirit (MS) sales are expected to post highest ever monthly sales, reaching 726k tons (up 14 percent MoM and 28 percent YoY).
High Speed Diesel (HSD) sales are also expected to improve by 10 percent MoM and 68 percent YoY to reach 753k tons, posting a 24-month high.
In FY20, volumes are likely to drop by 12 percent YoY due to overall economic slowdown and impact of COVID-19 outbreak.
In Jun-2020, PSO sales are likely to increase the most by 35 percent MoM as MS segment is poised to post 44 percent MoM increase. PSO’s increase is largely due to low inventory levels of smaller OMCs. PSO’s Furnace Oil (FO) volumes too increased by 146 percent MoM as FO has turned into a more economic source of energy because of decline in prices.
HASCOL volumes are likely to decline by 40 percent MoM, whereas APL and SHEL volumes are expected to improve by 12 percent MoM and 9 percent MoM, respectively in Jun-2020.
