Pakistani oil marketing companies witness volumes succumbing to economic woes

August 2019 volumetric offtake of oil marketing companies declined to 1.3 million tons, with high speed diesel (HSD) sales continuing to crater on the back of persistent grey-product penetration. Decline in furnace oil (FO) seems to have decelerated, contributing to the prevailing slowdown in POL volumes. For 8MCY19, volumes also declined to 12 million tons, receding 16%YoY exhausted by weak power demand (cumulative FO sales dip 40%YoY), where monthly average sales dropped to 255,000 tons as compared to 427,000 tons during 8MCY18, indicative of subdued monthly demand, but significant annual deviation. In terms of market shares, there was an improvement with PSO being at the top with 46% share followed by APL and HASOL. A 16%YoY decline in cumulative POL product sales for 8MCY19 underpins a fall in demand for POL products from the industrial segment mainly as influx of grey product and economic slowdown weighs heavily, exacerbated by consumers buckling under the pressure of rising pump prices

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