Petroleum Sales Decline 11% in July 2024

Total petroleum sales during July 2024 arrived at 1.20 million tons, showcasing a decline of 11 percent YoY. According to Arif Habib Limited, the reduction in offtake comes on the back of a hike in the price of MS and HSD which resulted in lower consumption, the availability of smuggled petroleum products from Iran, and a fall in demand for FO-based power generation. The sales of MS decreased by 10 percent YoY in July 2024, settling at 0.59 million tons. Likewise, HSD offtake tumbled by 6 percent YoY to 0.46 million tons in July 2024. FO sales volumes plunged by 46 percent YoY, clocking in at 0.08 million tons. On an MoM basis, petroleum products dispatches contracted by 17 percent during July 2024 due to the aforementioned reasons. The offtake of MS plummeted by 16 percent MoM in July 2024. Similarly, the dispatches of HSD dwindled by 18 percent MoM. Whereas, FO sales reduced by 27 percent MoM. On a company-wide basis, the sales of PSO plummeted by 19 percent YoY basis to 0.55 million tons in July 2024. PSO’s offtake of MS, HSD, and FO contracted by 22 percent, 22 percent, and 17 percent YoY, respectively. Meanwhile, dispatches of SHEL, HASCOL, and APL witnessed a decline of 8 percent, 12 percent, and 23 percent YoY, respectively during July 2024. During July 2024, PSO lost market share of 4.6 percent, settling at 45.6 percent compared to 50.2 percent in July 2023. Similarly, the market share of APL reduced by 1.2 percent, arriving at 8.5 percent YoY in July 2024. Meanwhile, the market share of SHEL in July 2024 arrived at 7.2 percent (7.0 percent in SPLY). On the other hand, the market share of HASCOL remained unchanged at 3.2 percent. Lastly, the market share of other OMCs climbed up by 5.6 percent to arrive at 35.4 percent in July 2024.