Total sales of petroleum settled at 1.34mn tons in Jun’23, declining by 31% YoY which is mainly on account of i) higher petroleum prices, ii) economic slowdown, iii) jump in smuggled petroleum products from Iran, and iv) lower reliance on FO-based power generation. MS offtake reduced by 9% YoY, to clock in at 0.64mn tons in Jun’23. Likewise, HSD volumes dwindled by 24% YoY to arrive at 0.54mn tons in Jun’23. Meanwhile, Furnace Oil (FO) sales volumes plunged by 78% YoY in Jun’23, reaching 0.10mn tons. On an MoM basis, petroleum sales registered a growth of 4% during Jun’23 amid a fall in MS and HSD prices during the month, which led to increased consumption. With this, volumes of MS recorded a growth of 7% MoM, while HSD offtake remained stable. FO sales ascended by 10% MoM due to higher demand for FO-based power generation in summer.
Sales of total petroleum products in FY23 declined by 26% YoY to 16.61mn tons, the lowest ever sales (excluding the COVID period FY20) since available data (FY07). Product-wise data showed a decline in all categories; the offtake of MS, HSD, and FO arrived at 7.42mn tons, 5.83mn tons, and 1.96mn tons, respectively.
PSO’s offtake plummeted by 38% YoY in Jun’23
Company-wise analysis depicted that PSO’s offtake declined by 38% YoY in Jun’23, which was contributed by a decline in MS, HSD, and FO sales by 8%, 22%, and 97% YoY, respectively. Similarly, sales of APL and SHEL slumped by 25% and 37% YoY, respectively. At the same time, HASCOL’s offtake showcased a mammoth growth of 2.9x YoY.
On a cumulative basis, petroleum sales of PSO, SHEL, and APL decreased by 28%, 28% and 24% YoY, respectively, during FY23. On the other hand, HASCOL’s offtake depicted a growth of 53% YoY in FY23.
During FY23, PSO’s market share declined by 1.5% to 50.0% compared to 51.5% in FY22. In contrast, the market share of SHEL remained stable at 7.6% YoY. Moreover, the market share of APL and HASCOL in FY23 increased to 9.6% (9.3% in SPLY) and 2.5% (1.2% in SPLY), respectively. Meanwhile, other OMCs’ market share remained at 30.4% in FY23.
Courtesy – AHL Research