LAHORE - During September 2018, oil sales posted decline of 21 percent annually to 1.8 million tons due to sharp decline of 61 percent in furnace oil sale amidst availability of alternative power generation sources of RLNG and coal.

In Aug 2018, oil sales went down by around 46 percent YoY. On the other hand, sales of HSD and MS oil posted growth of 5 percent YoY each, better than last month as Aug 2018 MS/HSD went down by 11 percent/38 percent YoY on account of restrained buying by dealers/pump owners as Govt. was claiming to reduce POL prices. Excluding FO, volumetric sales were up by 2 percent YoY, driven by HSD/MS both by 5 percent YoY each.

Pakistan OMCs sales during 1QFY19 touched 4-year low at 4.7m tons, down by 33 percent YoY owing to decline in sales of furnace oil (FO) by 67 percent YoY amid aforementioned reasons. Adjusting FO oil sales for the Sept quarter is down 13 percent YoY.

Hascol outperformed its peers by posting growth of 13 percent YoY mainly driven by HSD sales, up 38 percent YoY in Sep 2018. While its MS and FO sales dipped 5 percent and 6 percent YoY respectively.

Pakistan State Oil (PSO) lost around 40 percent of its volume in Sep 2018, where major drag came from furnace oil (down 78 percent YoY). Adjusting FO sales, PSO volumes were up 2 percent YoY. During 1QFY19, in MS oil segment, market share of PSO went down by 4.8ppts YoY to 38.6 percent due to increased competition from other players, while SHEL and APL gained 0.6ppt and 1.5ppt YoY in their market shares respectively.