The petroleum sector plays a crucial role in fueling economies and supporting various industries. In the first nine months of the financial year 2024 (FY24), there has been a noticeable change in sales patterns within the petroleum industry compared to the same period last year (SPLY).
Diving Deeper
Recent data shows that there was a significant 11 percent year-on-year (YoY) decrease in the total sales of petroleum products during this period, totaling 11.34 million tons, down from 12.80 million tons in SPLY. This decline in sales was seen across all product categories, with Motor Spirit (MS), High-Speed Diesel (HSD), and Furnace Oil (FO) sales volumes at 5.30 million tons, 4.58 million tons, and 0.84 million tons, respectively.
While Pakistan State Oil (PSO) saw an 11 percent YoY increase in sales, driven by higher MS and HSD sales, Attock Petroleum Limited (APL) and Hascol Petroleum Limited experienced declines of 9 percent and 41 percent YoY, respectively.
When it comes to market share, PSO and Shell Pakistan Limited (SHEL) saw slight decreases, while APL and Hascol saw increases in their market share during 9MFY24. This fluid market landscape underscores the importance of staying abreast of and adapting to market dynamics in the petroleum industry.
Rise in Gasoline Prices
Recently, the Ministry of Finance announced new prices for petroleum products, bringing both positive and negative news for consumers. The notification revealed a price hike of Rs. 9.66 per liter for petrol, pushing the new price to Rs. 289.41 per liter.
However, there was some relief for diesel consumers as the price was reduced by Rs. 3.32 per liter, now resting at Rs. 282.24 per liter.
The significant increase in petrol prices can be attributed to the International Monetary Fund’s (IMF) recommendation to reintroduce an 18% general sales tax (GST) on petrol as a condition for the final tranche of its bailout package, which influenced the government’s decision to implement the hike.
