LAHORE - Pakistan oil sales is likely to post sharp decline of 30 percent YoY to 1.6million tonnes mainly due to 60 percent YoY fall in Furnace Oil (FO) sales amidst its likely local usage in power sector (after availability of RLNG). Excluding FO, oil sales is likely to post decline of 12 percent YoY.

HSD sales is expected to fall 22 percent YoY due to increase in its per liter price by 43 percent to Rs113 per liter in Jul 2018 vs. Rs80/liter in Jul 2017. While sales of Motor Spirit (MS) remained flat YoY at 614k tonnes. Compared to last month, HSD sales is up by 4 percent YoY as last month's sales were affected due to Ramazan factor.

Among companies, Hascol sales remained better than its peers during the outgoing quarter as decline in sales was contained to 11 percent YoY compared to industry's 30 percent YoY decline (Pakistan State Oil (PSO) down 49 percent YoY, Attock Petroleum (APL) down 18 percent YoY).

Hascol's FO sales volume were up by 30 percent YoY which led to better performance than peers. While HSD/MS fell by 26/17 percent YoY.

Major drag in PSO volumes came from FO (down 77 percent YoY). Excluding FO, PSO's volume fell 20 percent YoY.

In MS segment, PSO maintained its market leadership with market share of 37 percent in Jul 2018 (down 3.3ppts YoY), while Hascol's market share increased by 2.4ppt YoY to 11.5 percent.