LAHORE : Pakistan oil marketing companies (OMCs) started 2019 with declining sales numbers where Ex-FO sales continued to portray downward trend (down 16 percent YoY in Jan 2019) in its monthly numbers for last few months due to slowdown in economic activities, inflationary pressure and smuggling of diesel from Iran. Product wise, HSD was down 25 percent YoY while petrol sale was marginally up by 2 percent YoY after posting decline for 3 consecutive months. Furnace Oil (FO) was at its highest monthly sales of FY19 despite posting decline of 15 percent YoY. Compared to last month, FO was up 60 percent MoM. Cumulatively during 7MFY19, FO was down 62 percent amidst its lower usage in power generation after availability of relatively cheaper fuel sources like coal and RLNG. Among companies, Hascol attained market share of 14 percent in overall volumes after witnessing depressed performance where its market share averaged 8-11 percent for last few months. To note, in Dec 2018 Hascol market share fell to 8 percent amidst higher discounts offerings by its competitors.

For 7MFY19, oil sales came down by 30 percent YoY amidst aforementioned reasons. Product wise, HSD was down 22 percent YoY while, MS Oil sales witnessed fall of 2 percent after posting positive growth for a decade.