OMC’s Sales Rise to 1.45mn Tons, Highest in 19 Months

Staff Report

Pakistan’s Oil Marketing Companies (OMCs) have recorded their highest sales in 19 months, reaching 1.45 million tons in June 2024. This represents an 8% year-on-year (YoY) increase and a 4% month-on-month (MoM) rise, primarily driven by reductions in petrol and diesel prices.Saudi Oil Giant Aramco Acquires 40% Stakes in GO

Despite this strong monthly performance, total sales for FY24 amounted to 15.3 million tons, marking an 8% YoY decline compared to 16.6 million tons in FY23. This is the lowest sales volume in 18 years, with levels similar to those last seen in FY06.

Excluding furnace oil (Ex-FO), sales in June 2024 were 1.34 million tons, reflecting an 8% YoY increase but a 2% MoM fall. For FY24, Ex-FO sales totaled 14.2 million tons, a 2% YoY decline.

Product Performance:

Motor Spirit (MS): Sales grew by 9% YoY and 15% MoM to 700,000 tons in June 2024. This growth was driven by a reduction in petrol prices by Rs14.94/litre to Rs258.16/litre and the seasonal effect of holidays and summer vacations.
High-Speed Diesel (HSD): Sales saw a 5% YoY rise, but an 11% MoM decline. The monthly decline is attributed to seasonal demand changes amid the end of the harvesting season.
Furnace Oil (FO): Sales for June 2024 rose by 6% YoY and 54% MoM to 106,000 tons, due to higher power generation from FO-based power plants.

Company Performance:

Attock Petroleum (APL): Sales were 129,000 tons in June 2024, a 14% YoY decline mainly due to a 61% YoY fall in FO sales and an 8% MoM fall due to a 22% decrease in HSD sales.
Pakistan State Oil (PSO): Recorded a flat YoY trend and a 2% MoM decline to 649,000 tons in June 2024. PSO’s market share in HSD and MS was 46.6% and 44.2%, down 325bps and up 37bps MoM, respectively.
Shell Pakistan (SHEL): Saw a 12% YoY and a 6% MoM rise to 107,000 tons.
HASCOL: Sales were 38,000 tons, down 37% YoY and 8% MoM.

The government has set a Petroleum Development Levy (PDL) collection target of Rs869 billion for FY24, which has reached Rs1 trillion, up 15%, based on our calculations.

After witnessing declines for two consecutive years, we expect single-digit growth for FY25 sales in both MS and HSD due to the gradual recovery of the economy.