Oil sales increased by 18% in Financial year 2021

Oil sales increased by 20% YoY in June 2021 up by 14% MoM which pushed FY21 volumetric growth to 18% YoY.

To highlight, petroleum sales remained robust and posted strong YoY growth on the back of (1) lower base effect given COVID-related lockdowns last year and (2) accelerating economic growth with growth recorded across all major products (MS/HSD/FO up by 7/3/197% YoY). Player-wise analysis reveals that PSO/APL/SHELL/HASCOL sales recorded growth of 9/5/40/2% YoY during the month.

Volumes rose across all major products: Domestic petroleum sales (Ex-non Energy) rose by 20% YoY (up 14% MoM) in June 2021 that pushed FY21 volumetric sales growth to 18% YoY. During the month, all major products recorded an increase in volumes. MS depicted an increase of 7% YoY ( 6% MoM) to 776KT given (1) higher vehicle sales, (2) less restrictive COVID-related measures, and (3) accelerating economic activity.

HSD surged to 776KT, up by 3% YoY (↑ 2% MoM) due to (1) accelerating economic activity as evident by 12.8% YoY increase in large scale manufacturing during 10MFY21, (2) uptick in international trade (goods exports/imports ↑ 10/18% YoY during 11MFY21), and (3) strict action against smuggled petroleum products.

In the black oil segment, FO sales rose by 197% YoY (up 102% MoM) to clock in at 339KT due to an increasing mix of FO in power generation given lower availability of gas due to annual field turnarounds, lower imports of LNG, and LNG terminal closure on last 2 days of June.

PSO

Higher FO volumes drove PSO overall volumes higher: In June 2021, PSO’s sales volume clocked in at 918KT depicting an increase of 9/21% YoY/MoM. This increase in sales was primarily a result of FO sales surging by 5.8x YoY due to higher demand in power generation whereas MS/HSD sales declined by 10/20% YoY. This translated into PSO’s market share decreasing by 2/3ppts YoY in MS/HSD to 41/46%. Whereas the company’s FO market share increased by a whopping 31ppts to 63%.

APL

APL recorded growth in white oil volumes: APL recorded a growth of 5/14% YoY/MoM as its petroleum sales clocked in at 163KT. Product-wise analysis reveals that MS/HSD inclined by 7/6% YoY whereas FO volumes decreased by 3% YoY. However, APL’s market share in MS remained flat YoY and in HSD inclined by 1ppts YoY to stand at 7/8%. The company’s market share in FO declined by 9ppts to 13%.

SHELL Oil Sales

SHELL volumes grew by 40% YoY (up 13% MoM) where MS/HSD was up by 19/73% YoY in June 2021. The company gained market share YoY in MS/HSD market by 1/1 ppts to 11/8%.

HASCOL volumes recovered: During the month, HASCOL’s volumes increased by 2/24% YoY/MoM to clock in at 72KT with an incline witnessed in MS/HSD of 2/2% YoY.