Petroleum sales declined by 26% YoY to 15.26mn tons between July and May 2023

Total petroleum sales arrived at 1.30mn tons in May’23, plunging by 40% YoY which is mainly on account of i) surge in petroleum prices, ii) slowdown in the economy, iii) availability of smuggled petroleum products from Iran, and iv) reduction in FO-based power generation.

MS offtake plummeted by 24% YoY, to arrive at 0.60mn tons in May’23. Similarly, HSD volumes descended by 36% YoY, to arrive at 0.54mn tons in May’23. Furthermore, Furnace Oil (FO) sales volumes declined by 80% YoY in May’23, clocking in at 0.09mn tons. On a MoM basis, petroleum sales recorded a growth of 11% during May’23 amid i) harvesting in the month of May’23, which led to higher consumption of HSD, and ii) revival of demand for MS and HSD amid drop in prices. With this, volumes of MS and HSD registered an increase of 4% and 18% MoM, respectively. FO sales climbed up by 26% MoM given increase in demand for FO-based power generation amid the commencement of summer season.

During 11MFY23, sales of total petroleum products depicted a tumbled by 26% YoY to 15.26mn tons compared to 20.62mn tons in SPLY. Product-wise data showed a decline in all categories; the offtake of MS, HSD, and FO clocked-in at 6.78mn tons, 5.83mn tons, and 1.96mn tons, respectively.

PSO’s offtake dwindled by 51% YoY in May’23

Company-wise analysis depicted that PSO’s offtake reduced by 51% YoY in May’23, which was contributed by a decline in sales of MS, HSD, and FO by 33%, 40%, and 96% YoY, respectively. Likewise, sales of APL and SHEL reduced by 42% and 45% YoY, respectively. Whereas, HASCOL’s offtake reported a colossal jump of 8.0x YoY.

During 11MFY23, PSO’s market share decline by 1.1% to 50.2% compared to 51.3% in 11MFY22. Whereas, market share of SHEL remained stable at 7.6% YoY. Meanwhile, market share of APL and HASCOL in 10MFY23 increased to 9.4% (9.2% in SPLY) and 2.3% (1.2% in SPLY), respectively. Meanwhile, the market share of other OMCs settled at 30.4% in 11MFY23 compared to 30.5% in 11MFY22.

Courtesy – AHL Research


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