Karachi, September 3, 2019: During the month of Aug’19, petroleum sales remained weak due to Eid holidays of four days along with massive increase in local petroleum product prices on account of PKR depreciation and rise in international oil prices.
Meanwhile, HSD witnessed a steep decline of 17 percent YoY to 0.41 million tons (lowest sales data since 2005), while MS sales witnessed growth of 4 percent YoY to 0.63mn tons. On the other hand, Furnace oil (FO) sales dropped by 4 percent YoY to 0.18 million tons. We expect demand of FO to drop further in upcoming months due to lower electricity requirement in winters and higher availability from other sources (Coal and RLNG).
During 8MCY19, total White and Black Oil sales clocked-in at 12.04 million tons, depicting a decline of 15 percent YoY due to significant decrease in sales volumes of HSD and FO by 16 percent YoY and 40 percent YoY, respectively.
In retail fuel segment, Motor Gasoline sales clocked in at 5.01 million tons, increased by 3 percent YoY compared to the preceding year on account of increase in price of Compressed Natural Gas (CNG) in the recent past which encouraged demand of MoGas.
High Speed Diesel (HSD) sales decreased by 16 percent YoY to 4.49 million tons due to various factors including Agriculture sector registering sharp slowdown, Large Scale Manufacturing depicting negative growth in manufacturing sector by 3.5 percent YoY, Shift in reliance to electricity generation available on national grid as opposed to diesel based captive power generation, and Higher HSD price (up by 17 percent) compared to same period last year.
Meanwhile, Furnace Oil is being replaced by other sources namely Coal, Hydel and RLNG, resulting in a drastic decline of 40 percent YoY to 2.05 million tons compared to 3.40 million tons in SPLY.
During 8MCY19, PSO is underway to regain its lost market share owing to HASCOL losing its market share from 13.0 percent in 8MCY18 to 8.2 percent in 8MCY19 which directly benefited the largest oil marketing company while rise in price of CNG resulted in higher demand of white oil products.
As a consequence, market share of PSO and SHELL increased to 44.9 percent and 8.6 percent vis-à-vis 43.7 percent and 7.6 percent in 8MCY18, respectively. On the other hand, total market share of APL remained flat at 10.2 percent.