Pakistan’s Oil Marketing Company Sales Grew 26% YoY in September

The sales of Pakistan’s oil marketing companies (OMCs) are estimated to have grown by 26 percent year-over-year (YoY) to 1.93 million tons in September, according to Topline Securities.

The brokerage firm tweeted that it estimated that OMCs sold a total of 1.93 million tonnes in September.

The firm attributed the growth in oil sales to the higher sales of petrol and high-speed diesel, which surged 23 percent and 46 percent YoY respectively. This was, in turn, based on increased economic activity and a rise in motorcycle sales.

In contrast, Topline Securities projected that the sales stayed unchanged month-over-month (MoM) in September. It attributed this to rising fuel station prices and to lower transportation activity and lower demand for fuel oil.

Pakistan State Oil (PSO), Shell Pakistan (SHELL), and Attock Petroleum (APL) made significant gains, while Hascol Petroleum (HASCOL) lost a significant part of its market share.

PSO’s sales rose by 32 percent YoY, followed by APL with an increase in sales of 22 percent. Meanwhile, HASCOL’s sales slid 57 percent.

Topline Securities has estimated that Pakistan’s oil sales will register an all-time quarterly high of 5.8 million tonnes in the first quarter of FY 2022.

“We expect Pakistan oil sales to remain strong, and anticipate sales growth of 15-20 percent in FY22,” the company said.

This increase in Pakistan’s OMC sales comes amid a surge in global oil prices. On 28 September, the Brent Crude prices rose above $80 per barrel for the first time since October 2018.

On September 30, Pakistan’s government increased the price of petrol by Rs. 4 per liter, and that of high-speed diesel by Rs. 2 per liter.

Meanwhile, Finance Minister Shaukat Tarin said Saudi Arabia was expected to provide oil supplies to Pakistan on a deferred payment basis.

An investment bank, Goldman Sachs, has warned that oil prices could hit $90 per barrel by the end of 2021, as demand continues to rise and global oil suppliers struggle to keep up.

courtesy: propakistani

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