OMC sales surge 26% MoM to 1.4 MT in May, highest in nine months

Pakistan’s Oil Marketing Companies (OMCs) achieved a sales volume of 1.39 million tons in May 2024, marking a nine-month high. 

According to a note by Topline Pakistan Research, this represents a 7% year-on-year (YoY) and a 26% month-on-month (MoM) increase. The growth was primarily driven by an 18% YoY rise in diesel sales. 

Cumulative sales for the first eleven months (July-May) of FY24 reached 13.8 million tons, reflecting a 9% YoY decline.

Diesel sales surged by 18% YoY to 643,000 tons in May, attributed to the harvesting season and a Rs16.3 per litre price drop. Efforts to curb petroleum product smuggling also contributed to the recovery in high-speed diesel (HSD) sales.

Motor Spirit (MS) sales grew by 1% YoY and 14% MoM to 607,000 tons in May, bringing the eleven-month FY24 total to 6.4 million tons, a 5% YoY decrease. Petrol prices dropped by Rs20.84 per litre during the month.

However, Furnace Oil (FO) sales declined by 29% YoY to 69,000 tons in May, due to reduced power generation from FO-based plants.

The government met its Petroleum Development Levy (PDL) collection target of Rs869 billion for FY24 within eleven months, surpassing Rs907 billion. With the current monthly collection rate of Rs80-85 billion, the total for FY24 could reach Rs990 billion to 1 trillion.

Among listed companies, Attock Petroleum (APL) saw a 14% YoY and 42% MoM rise in sales to 140,000 tons in May, with HSD sales increasing by 34% YoY and 62% MoM. APL’s market share in HSD grew by 150 basis points (bps) to 9.8%.

Pakistan State Oil (PSO) recorded a sales increase of 11% YoY and 19% MoM to 665,000 tons. PSO’s market share in HSD and MS stood at 49.9% and 43.8%, down by 170 bps and 290 bps respectively.

Shell Pakistan (SHEL) experienced a 13% YoY and a 23% MoM rise in sales to 100,000 tons, with its market share remaining stable in both MS and HSD.

HASCOL sales amounted to 41,000 tons, a 51% MoM increase but a 39% YoY decrease. HASCOL’s market share improved by 90 bps in MS and 30 bps in HSD, reaching 4.0% and 2.6% respectively during May 2024.