May 2024 Petroleum Market Report Record Sales Surge
As demand for petroleum products spiked to a nine-month high at 1.4 million tons in May 2024 in the wake of a reduction in prices, total consumption reached 13.8 million tons in July-May 2023-24, according to Topline Research. Topline Research analyst Myesha Sohail reported that tax collection through PDL touched Rs907 billion in 11 months of FY24, adding that “the government could realise Rs990 billion to Rs1 trillion” on the back of a monthly average of Rs80-85 billion.
The government collects PDL of Rs60 per litre on the sale of both petrol and diesel.
She said oil marketing companies (OMCs) recorded sales of 1.39 million tons in May 2024, the highest in nine months, up 7% year-on-year and 26% month-on-month, led by an 18% year-on-year surge in diesel sales.
Petroleum sales in the first 11 months totalled 13.8 million tons, down 9% compared to the same period of last year.
She said diesel sales improved significantly in May 2024 with a growth of 18% at 643,000 tons compared to the same month of last year “due to the harvesting season and the drop in prices by Rs16.3 per litre in the month.” Furthermore, a crackdown on the smuggling of petroleum products has also resulted in the recovery of high-speed diesel (HSD) sales.
Motor spirit (MS/petrol) sales went up 1% year-on-year and 14% month-on-month to 607,000 tons, which took 11-month sales to 6.4 million tons, down 5% year-on-year. Petrol prices recorded a drop of Rs20.84/litre in May 2024. Furnace oil sales fell 29% every year to 69,000 tons. This decrease was attributed to lower power generation from furnace oil-based power plants.
Company-wise sales
Among the listed companies, Attock Petroleum Limited (APL)’s sales clocked in at 140,000 tons, up 14% year-on-year and 42% month-on-month in May 2024, primarily led by the surge in HSD demand.
APL’s market share in HSD sales increased 150 basis points month-on-month to 9.8%.
Pakistan State Oil (PSO) saw a rise of 11% year-on-year and 19% month-on-month as its sales reached 665,000 tons in May 2024. PSO’s market share in HSD and MS came in at 49.9% and 43.8%, respectively, down 170 basis points and 290 basis points month-on-month.
Shell Pakistan registered a 13% year-on-year and 23% month-on-month rise in sales to 100,000 tons. Its market share largely remained unchanged in both MS and HSD.
Sales of Hascol Petroleum stood at 41,000 tons, up 51% month-on-month and down 39% year-on-year. Its market share improved 90 basis points and 30 basis points in MS and HSD, respectively, on a month-on-month basis to 4% and 2.6% during May 2024.
