KARACHI: Oil sales hit a seven-year low of 1.35 million tons in August mainly due to less reliance on furnace oil-based power plants in the country, according to a brokerage house on Tuesday.
Sales in the month were down 46% on a year-on-year basis.
“Volumes declined due to a steep fall of 79% in furnace oil sales on a year-on-year basis to 191,000 tons amid its reduced consumption in the power sector after availability of substitute (re-gasified liquefied natural gas – RLNG),” Topline Securities’ analyst Shankar Talreja said in a note to clients.
“Excluding furnace oil, volumes showed a decline of 27% year-on-year due to lower working days in August amid Eid holidays coupled with a double-digit growth in petroleum prices,” he said.
According to breakdown, sales of high-speed diesel touched a nearly four-year low at 493,000 tons in August, down 38% year-on-year due to 46% increase in its prices to Rs113 per litre.
For the first two months (July-August) of the current fiscal year, cumulative sales of high-speed diesel were down 30% to 1.1 million tons.
Attock Petroleum Limited (APL) outperformed its peers by posting a meagre drop of 5% in its volumes to 181,000 tons. “Petrol and high-speed diesel sales of APL went up by 5% and 25% respectively. Furnace oil sale’s fell by 33% on a year-on-year basis,” he said.
Pakistan State Oil (PSO) remained the most affected during August as its furnace oil sale’s were down 97%, taking overall decline to 66%.
“Excluding furnace oil, volumes of PSO were down by 40% with high-speed diesel and petrol sale’s declining 55% and 23% respectively,” he said.
During the first two months, the market share of PSO in the petrol oil segment went down by five percentage points to 37% due to increased competition from other players.
APL and Shell Pakistan, however, gained two percentage points and one percentage point in their market shares respectively, he said.
(This news/article originally appeared in The Express Tribune on September 5th, 2018)