OMCs grapple with 19% dip in petroleum sales

WEB DESK: In a recent analysis conducted by Arif Habib Limited, data reveals a significant downturn in the sales performance of oil marketing companies (OMCs) during the month of February 2024.

The sales volume plummeted by 19 per cent compared to the previous month, registering at 1.12 million metric tonnes (MTs), down from 1.38 MTs in January 2024.

This decline is not limited to the month-to-month comparison, as year-on-year figures also portray a negative trend. February 2024 saw an 8 per cent reduction in oil sales compared to the same period in 2023, with sales dropping from 1.22 MTs to the current 1.12 MTs.

Taking a broader perspective on the fiscal year, cumulative sales for the ongoing fiscal year (8MFY24) stand at 10.18 MTs, reflecting a 13 per cent year-on-year decline from the 11.69 MTs reported in 8MFY23.

Breaking down the sales performance by product, Furnace Oil (FO) and Motor Spirit (MS) experienced a substantial MoM decline of 73 per cent and 12 per cent, respectively, totaling 50,000 metric tonnes and 540,000 metric tonnes.

Similarly, high-speed diesel (HSD) sales were reduced by 13 per cent MoM, reaching 450,000 metric tonnes.

Examining the performance of specific companies in the OMC sector, Attock Petroleum Limited recorded the most significant drop, witnessing a 26 per cent MoM decrease with sales standing at 110,000 metric tonnes.

Pakistan State Oil (PSO) and Shell Pakistan Limited (SHEL) followed with sales drops of 14 per cent and 9 per cent MoM, respectively.

Contrastingly, HASCOL experienced a notable month-on-month growth of 17 per cent, reaching a sales volume of 30,000 metric tonnes.

Comparing figures from February 2023, PSO, APL, and SHEL reported sales declines of 5 per cent, 1 per cent, and 15 per cent YoY, respectively, while HASCOL’s topline remained stable during the review period.

In the broader context of 8MFY24, all OMCs, except HASCOL, faced a considerable decline in sales, with HASCOL reporting a remarkable 19 per cent year-on-year growth.

PSO maintained its dominance in the OMC industry, holding a market share of 50.89 per cent in overall industry sales in February 2024. APL, SHEL, and HASCOL held market shares of 9.82 per cent, 8.04 per cent, and 2.68 per cent, respectively, during the same period.

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