Oil sales jump 24 per cent in first quarter of FY22

Web Desk BOL News

05th Oct, 2021. 12:18 pm

Overall, the Petroleum Division would spend Rs3.249 billion on 13 ongoing and new projects during the year 2021/22. Photo: File

KARACHI: The overall sales of the oil marketing companies (OMCs) surged 24 per cent to 5.9 million tonnes in the first quarter of FY22, owing to higher agricultural and trading activities along with the generating demand for an alternative fuel, i.e., furnace oil from the power sector.

Additionally, the fuel demand driven activities continued boosting up, as the auto sector is witnessing better monthly sales numbers.

The sales registered a significant growth of 29 per cent to clock-in at 2 million tonnes in September 2021 as against 1.5 million tonnes in the same period of the last year.

The motor spirit (MS) sales surged 25 per cent to 805k tonnes, and high-speed diesel (HSD) surged 51 per cent to 707k tonnes in September 2021. Similarly, the furnace oil (FO) sales increased 7 per cent to stand at 400k tonnes during the month.

However, on a sequential basis, the sales remained almost flat, as these numbers were already on the higher side; followed by stable demand, increased tourism, and agronomic activities picking up.

The Pakistan State Oil (PSO) market share stood at 52 per cent in September 2021. The total volumes of the company reached 3 million tonnes, up 34 per cent in the first quarter of FY22.

In September alone, PSO sales surged 41 per cent, reaching 986k tonnes, where MS sales remained upbeat with a contribution of 361k tonnes, up 39 per cent and HSD sales ballooned 61 per cent to 348k tonnes. Similarly, the furnace oil sales increased 20 per cent.

Attock Petroleum’s overall volumetric sales surged 23 per cent during the period under review to stand at 568k tonnes as against 463k tonnes sold in the same period of the last year.

Attock Petroleum observed an increase of 22 per cent in its sales, reaching 205k tonnes in September 2021.

The market share of Shell Pakistan Limited increased to 7.3 per cent in September 2021. The sales noted an increase of 26 per cent in the first quarter of FY22; and 36 per cent increase in September.

Hascol Petroleum’s sales volumes increased 88 per cent to stand at 29k tonnes in September 2021 as against 16k tonnes in the previous month.

“In the forthcoming months, we expect [the] oil sales to remain upbeat supported by the higher agricultural and trading activities along with the boost in the auto sales and tourism,” Muhammad Abdul Rafay at Pearl Securities said.

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

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