Pakistan Made Record-breaking Oil Sales in April 2022

Pakistan’s oil sales were recorded at 2.2 million tonnes during April 2022, which is the highest since May 2018. Oil sales have increased by 32 percent year-over-year (YoY), caused by a 161 percent YoY increase in the sales of Furnace Oil (FO) and a 17 percent YoY increase in the sales of High-Speed Diesel (HSD), according to a report by Topline Securities. On a month-over-month basis (MoM), the sales of petroleum products also increased drastically due to an increase in agricultural activity and high demand in the power sector, as reported by Topline Securities. Consumption of petroleum goods increased by 21 percent MoM, driven by a 33 percent MoM increase in HSD and a 62 percent increase in FO. For the first 10 months of the current fiscal year (10MFY22), petroleum sales increased by double digits due to the increase in the sales of the three main goods. During this time period, petrol (MS) grew by 11 percent to 7.4 million tonnes, HSD grew by 19 percent to 7.3 million tonnes, and FO increased by 26 percent to 3.1 million tonnes. The double-digit growth during these months was caused by economic recovery and higher transportation activities. By excluding the FO sales in April, the total sales stood at 1.8 million tonnes — an increase of 17 percent YoY and 14 percent MoM. Pakistan State Oil’s (PSO) sales grew by 58 percent YoY, marking a four-year high at 1.4 million tonnes. The growth in its sales was driven by an increase of 314 percent YoY in FO and 40 percent YoY in HSD. PSO’s market share also increased from 47 percent last April to 2021 to 56 percent this April. Shell Pakistan Limited’s (SHEL) sales increased by 16 percent to 156,000 tonnes, and the sales of Attock Premium Limited (APL) increased by 28 percent to 173,000 tonnes. Topline Securities predicts that the oil sales will continue, but the increasing circular debt and rising Price Differential Claim (PDC) still remain a huge threat to the sector.