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Oil Marketing Companies Report Slight Increase in Petroleum Sales as Winter Begins

Islamabad, Pakistan's oil marketing companies (OMCs) have reported a modest increase in petroleum product sales in November 2023, with a notable uptick in high-speed diesel (HSD) and residual fuel oil (RFO) sales. The overall sales volume for the month stood at 1.37 million tons, marking a 9% month-on-month (MoM) increase but an 11% year-on-year (YoY) decrease.

According to JS Global, the rise in sales is primarily attributed to the increase in HSD and RFO off-takes. HSD sales grew by 16% MoM, largely due to the ongoing Rabi sowing season, which typically sees heightened use of farm tractors and tube wells. Additionally, RFO sales saw a significant jump of 54% MoM. In contrast, the offtake of motor spirit (MS) remained relatively stable, with only a 2% MoM decrease.

Pakistan State Oil (PSO) emerged as the leading performer among OMCs, registering a 14% monthly increase in sales volume, surpassing the industry's average growth of 9%. This performance is indicative of PSO's robust market position in a fluctuating economic landscape.

The report also highlights the financial aspects of the oil industry, estimating that around Rs403 billion in Petroleum Development Levy (PDL) has been collected during the first five months of fiscal year 2024 (5MFY24). This collection represents approximately 47% of the fiscal year's target of Rs869 billion. Despite flat industry sales, JS Research anticipates the FY24 PDL target will be met. For the full fiscal year 2024, the industry's sales are expected to be in the range of 16.2 to 16.7 million tons, aligning closely with the figures from the previous year.

The data from JS Research provides valuable insights into the trends and economic implications of Pakistan's oil marketing sector, reflecting the industry's resilience and adaptability in the face of changing market dynamics.

The post Oil Marketing Companies Report Slight Increase in Petroleum Sales as Winter Begins appeared first on Pakistan Business News.

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