10MFY23: Petroleum sales dropped by 24% YoY to 13.97mn tons

Total sales of petroleum products arrived at 1.17mn tons in Apr’23, depicting a massive dip of 46% YoY which is majorly attributable to i) higher petroleum prices, ii) economic slowdown, iii) an increase in smuggled petroleum products from Iran, and iv) lower FO-based power generation. MS offtake went down by 24% YoY, to arrive at 0.58mn tons in Apr’23. Likewise, High-Speed Diesel (HSD) volumes plummeted by 50% YoY, to arrive at 0.46mn tons in Apr’23. Furthermore, Furnace Oil (FO) sales volumes plunged by 83% YoY in Apr’23, clocking-in at 0.07mn tons.

On an MoM basis, petroleum sales registered a jump of 6% during Apr’23 amid i) the ongoing harvesting season resulting in higher HSD demand and ii) the absence of heavy rainfall across the country. Hence, volumes of MS and HSD reported a growth of 4% and 16% MoM, respectively. Meanwhile, FO sales declined by 16% MoM. During 10MFY23, sales of total petroleum products depicted a drop of 24% YoY to 13.97mn tons compared to 18.44mn tons in SPLY. Product-wise data showed a decline in all categories; the offtake of MS, HSD, and FO clocked-in at 6.17mn tons, 5.28mn tons, and 1.87mn tons, respectively.

PSO’s offtake shrunk by 53% YoY in Apr’23

Company-wise analysis depicted that PSO’s offtake plummeted by 53% YoY in Apr’23, which was contributed by a decline in MS, HSD, and FO sales by 22%, 52%, and 98% YoY, respectively. Similarly, sales of APL and SHEL reduced by 31% and 43% YoY, respectively. Whereas HASCOL’s offtake reported a mammoth jump of 4.1x YoY.

During 10MFY23, PSO’s market share dropped by a meagre 0.2% to 50.5% compared to 50.7% in 10MFY22. On the other hand, the market share of SHEL remained stable at 7.7% YoY. Meanwhile, market share of APL and HASCOL in 10MFY23 increased to 9.4% (9.2% in SPLY) and 2.1% (1.3% in SPLY), respectively. Meanwhile, the market share of other OMCs dropped to 30.3% in 10MFY23 vis-à-vis 31.0% in 10MFY22.

Courtesy – AHL Research

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