The sale of total petroleum products in Pakistan recorded a year-on-year decline of 7% in December, reaching 1.24 million tons.
The decrease was attributed to a surge in prices and an economic slowdown, suppressing demand, according to brokerage house Arif Habib Limited (AHL).
The dip in sales was further influenced by reduced demand for Furnace Oil (FO), particularly amid the reliance on new coal-based power plants, AHL noted. Data from AHL indicated a substantial 36% YoY decline in FO sales, amounting to 0.08 million tons in December 2023.
Specifically, the sale of Motor Spirit (MS or petrol) experienced an 8% YoY decline, totaling 0.57 million tons, while the volume of High-Speed Diesel (HSD) marginally dipped by 2% YoY, settling at 0.51 million tons in December 2023.
On a month-on-month basis, the offtake of petroleum products witnessed a 10% decline in December. The volumes of MS remained unchanged at 0.57 million tons, whereas HSD offtake decreased by 21%, influenced by the peak demand in November 2023 for the Rabi season.
Similarly, FO offtake declined by 4% month-on-month in December.
In the first six months of FY24, sales of total petroleum products dropped by 15% YoY to 7.68 million tons compared to 9.03 million tons in the same period last year.
Product-wise data showed declines in all categories, with the offtake of MS, HSD, and FO settling at 3.57 million tons, 3.16 million tons, and 0.56 million tons, respectively, reflecting a decline of 7%, 6%, and 61%.
Company-wise, Pakistan State Oil (PSO) recorded a 5% YoY drop in December 2023, primarily contributed by a decrease in FO sales by 11% YoY, while MS sales registered a decline of 4% YoY. HSD sales of PSO also plunged 8% YoY.
Similarly, Shell Pakistan Limited witnessed an 18% YoY decrease in sales across all products. However, Attock Petroleum Limited (APL) and Hascol Petroleum Limited (HASCOL) experienced sales increases of 6% each YoY.
