Staff Report
KARACHI:
Oil Marketing Companies (OMCs) sales volumes in May, 2021 have witnessed another robust month, where total sales volume of the industry increased by 14% Year on Year (YoY) to record at 1,692 KT.
As per details, the significant uptick in volumes were recorded on the back of resumption in economic activities where growth in both HSD & MOGAS recorded at 11% & 15% YoY, respectively. During May-21, MOGAS sales reached all time high of 731KT. This notable increase in MOGAS sales is primarily attributable to healthy economic activities, and not due to any dealer discounts (as per our channel checks). Strong sales are likely to continue, as indicated by auto sales numbers released by PAMA, where 10MFY21 car sales increased by 54%, while two wheelers sales increased by 34% YoY. In addition to this, due to increased reliance on RFO based electricity generation, RFO sales have grown by 16% YoY in May-21.
On MoM basis, Industry’s total sales volume increased by 1%, primarily due to 9% increase in MOGAS sales. On the other hand HSD sales decline by 3% as wheat harvesting season ended in Apr-21. PSO market share in retail fuels decreased modestly to 45.7% due to 2.1% decrease in MOGAS market share whereas HSD share increased by 1%. APL retail market share in May-21 remained stable at 7% with 0.7% increase in HSD market share.
HASCOL witnessed a very fruitful month as company gained 2% retail fuel market share due to 1.5% & 1.7% uptick in HSD & MOGAS shares, respectively. During May-21, SHEL was able to maintain a stable retail fuel market share on the back of 3% uptick in High Octane market share.
In Jun-21, petroleum sales are expected to remain upbeat on the back of healthy economic activities and expected higher utilization of PSDP owing to the last month of fiscal year. In addition, we anticipate further uptick in MOGAS sales once travelling toNorthern areas resume at full scale.
