According to the research report, Oil marketing Companies (OMC) sales jacked up 4%MoM amid record car sales and rising tourism in Jul-21. Pakistan State Oil (PSO) was the biggest beneficiary during this month.

The total sales volume of OMCs advanced by 4%MoM while it rallied by 15%YoY. FO and MS sales volumes augmented by 27% and 8%MoM, respectively. On the other hand, HSD sales volumes went down by 10%MoM as more tube wells converted on solar energy. At the same time, FO and MS sales volume improved by 84%YoY and 8%YoY, respectively.

Company-wise data shows that overall sales volume of PSO swelled by 10%MoM in Jul’21, while HASCOL and SHELL showed a sharp decline of 33% and 5%MoM respectively.

The sales volume of APL remained stagnant on a monthly basis. The recovery in sales volume of FO was mainly due to demand from power producers in the absence of RLNG supply.

Outlook:

We expect that the positive trend to continue based on the current market for POL products. Due to international travel restrictions and escalating auto sales, the uprising in local tourism would remain the primary demand driver. The economic activities post decline in covid-19 cases as vaccination pick up the momentum would further support the POL products demand. The strong sales of two-three wheelers would continue to support the MS demand in the future.

Courtesy – : Spectrum Research, OCAC