Monday, September 25, 2023

Oil sales increased by 24% in the first quarter of FY22

Sales of oil marketing companies (OMCs) increased by 24% to 5.9 million tonnes in the first quarter of FY22, owing to increased agricultural and commercial operations, as well as the generation of demand for alternative fuel, namely furnace oil, from the power sector, among other factors.

Additionally, fuel demand-driven activities have continued to grow in tandem with the improvement in the auto industry’s monthly sales figures.

Sales increased by a substantial 29 percent in September 2021, compared to 1.5 million tonnes in the same period the previous year, resulting in a total of 2 million tonnes sold.

In September 2021, sales of motor spirit (MS) increased by 25 percent to 805 thousand tonnes, while sales of high-speed diesel (HSD) increased by 51 percent to 707 thousand tonnes. Similar to this, the sales of furnace oil (FO) climbed by 7 percent to reach 400 thousand tonnes during the month of November 2018.

However, on a sequential basis, sales were nearly flat, as these figures were already on the high side; this was followed by stable demand, rising tourism, and an increase in agronomic activities.

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In September 2021, Pakistan State Oil (PSO) held a 52 percent share of the global crude oil market. The entire volume of the company surpassed 3 million tonnes in the first quarter of FY22, representing a 34 percent increase over the same period last year.

September sales increased by 41% to 986k tonnes. MS sales increased by 39% to 361k tonnes in September, and HSD sales increased by 61 percent to 348k tonnes, according to the latest available data. In a similar vein, sales of furnace oil jumped by 20 percent.

Attock Petroleum’s entire volumetric sales increased by 23 percent during the time under review, reaching 568 thousand tonnes, compared to 463 thousand tonnes sold during the same period the previous year, according to the company.

Attock Petroleum had a 22 percent increase in sales in the first nine months of 2021, hitting 205 thousand tonnes.

Shell Pakistan Limited’s market share climbed to 7.3 percent in September 2021, according to the company. A 26 percent increase in sales was recorded in the first quarter of the fiscal year 2012, while a 36 percent increase was recorded in September.

When compared to the previous month, Hascol Petroleum’s sales volumes climbed by 88%, reaching 29k tonnes in September 2021 as opposed to 16k tonnes the previous month.

“In the next months, we expect [oil] sales to stay positive, supported by increased agricultural and trading activity, as well as an increase in auto sales and tourism,” said Muhammad Abdul Rafay, an analyst with Pearl Securities.

“Furthermore, the demand for [the] furnace oil from power generation is surging as RLNG [re-gasified liquefied natural gas] prices are already reporting at their high levels in lieu of the increase in [the] global commodity cycle; thus, the volumetric upside is yet to be seen in the near-term,” says the author.

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