Staff Reporter
ISLAMABAD: The consumption of petroleum products in Pakistan improved during January compared to the previous month (MoM), with last month’s OMC monthly volumes clocked in at 1,443KT, according to a report prepared by Optimus Capital Management (Pvt.) Ltd.
HSD sales grew by 11.9% in Jan-23. HSD monthly volumetric sales arrived at 584KT with an M/M and / Y/Y growth of +11.9/-21.1% in the month of January 2023.
On a monthly basis, the increase in volumes was likely due to (1) resumption of schools after winter vacations, (2) decline in Ex-depot prices and (3) a low base effect.
On Y/Y basis, volumes shrank by 21.1% on the back of (1) rise in oil prices and (2) economic slowdown.
MS demand arrived at 648 KT in Jan-23. MS demand clocked in at 648 KT in January 2023 with a M/M rise of 4.3%. It is believed that the increase in MS demand is owing to the resumption of schools and a slight decrease in avgerage MS price in the month of January. On Y/Y basis, demand contracted by 13.0% attributable to inflationary pressure and a decline in automobile sales.
FO sales came in at 143 KT in Jan-23. FO sales witnessed a M/M increase of 16.2% to arrive at 143 KT in Jan-23. The increase is likely attributable to higher RFO generation from power sector. On Y/Y basis, FO demand slumped by 44.6% due to lower reliance of power sector on RFO power plants.
PSO and APL gained Market Share. PSO and APL market share increased by 1.9 pps and 0.6 pps respectively, whereas SHEL/HASCOL market share dipped by 0.3/0.1 pps.
Demand expected to fall next month: report
The report projected the demand to contract in the next month due to a recent price surge.
It said the POL volumetric demand was expected to remain subdued due to an expected rise in prices of petroleum products on the back of an increase in levy as per negotiations with the IMF and a rupee devaluation.
