KARACHI: High oil prices, massive drop in auto sales, low power generation and economic slowdown restricted the country’s overall oil products sales which declined by nine per cent in March and 21pc during the first nine months of the current fiscal year (9MFY23).

According to Nasheed Malik of Topline Securities, this is the lowest monthly sales figure in 35 months, since February-April 2020.

Oil sales in March this year stood at 1.1 million tonnes compared to 1.22m tonnes in February and 1.82m tonnes in March last year. Total sales in 9MFY23 declined to 12.80m tonnes from 16.26m tonnes during the same period last year.

Petrol sales, however, inched up by one per cent in March to 0.56m tonnes from 0.55m tonnes in February but remained 28pc lower than 0.77m tonnes in March 2022. Total petrol sales in 9MFY23 fell to 5.59m tonnes from 6.68m tonnes, down 16pc from 9MFY22.

After a 17pc drop in diesel sales to 0.40m tonnes in March from 0.48m tonnes in February, its total sales in 9MFY23 remained flat at 4.82m tonnes (24pc) from 6.38m tonnes during the same period last fiscal year. March sales of diesel were also 43pc lower than 0.69m tonnes recorded in the same month last year.

Low demand for power generation resulted in a steep fall of 28pc in furnace oil sales to 0.09m tonnes in March from 0.12m tonnes in February. March sales were lower by 70pc when compared with 0.28m tonnes in the same month last year.

Total furnace oil sales in 9MFY23 fell by 33pc to 1.79m tonnes from 2.67m tonnes in the same period last fiscal year. Mr Malik said Pakistan State Oil (PSO) sales decreased by 10pc month-on-month (MoM) to 536,000 tonnes and 44pc year-on-year (YoY), while its market share declined to 49pc in March from 52pc in the same month last year.

Attock Petroleum (APL) sales declined by one per cent MoM and 30pc YoY. Its market share for March was 10pc compared to 9pc in the same month last year.

Shell Pakistan sales fell by 15pc MoM and by 38pc YoY. Its market share for March this year and last year was the same at 8pc.

Mr Malik said a higher inflationary environment, particularly the prices of petrol and diesel, had a major impact on demand, followed by the start of the holy month of Ramazan from the last week of March. He anticipated FY23 oil sales to drop by 20-25pc YoY, mainly due to the overall slowdown in the economy.

Published in Dawn, April 4th, 2023