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Oil sales jump by 8% in first nine months of FY14

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KARCHI: Due to the core electricity producing fuel amidst shortage of Compressed Natural Gas (CNG), oil sales in the country during nine-month of current fiscal (July-March 2014) rose by 7.90 percent to 14.49 million tonnes as compared to 13.43 million tonnes in same period last fiscal.
According to latest data of Oil Companies Advisory Committee (OCAC), Furnace Oil (FO), as main electricity generator contributed highest share in upsurge of oil sales to 6.88 million tonnes in said period FY14 as against 6.25 million tonnes in same period of FY 2012-13. High Speed Diesel (HSD) was second major contributor in the total oil sales by registering 6 percent yearly growth in nine months of FY14 to 4.81 million tonnes as compared to 4.54 million tonnes in corresponding period of last fiscal. 
Mogas sales stood at 2.79 million tonnes in said period, representing a 6 percent yearly growth while compared to 2.63 million tonne sale in same period of FY13.
During March 2014, FO sales of Oil and Marketing Companies (OMCs) increased by 24 percent Month on Month (MoM) to 767,000 tonnes against 618,000 tonnes during February 2014. Rising electricity needs, as winter season edged most part of the country, was the main reason behind FO volume growth during the said period. Furthermore, Mogas volume of the sector inched up by a meager 4 percent MoM to 314,000 tonnes. 
The slowdown in Mogas sales growth was justified by resumption of CNG in Punjab and Khyber Pakhtunkhwa after long winter shut down, said Invest Cap’s analyst. 
The volume growths in these two products supersede the 1 percent drop in HSD sales and improved the sector sale by 12 percent MoM in March 2014.
PSO losing share in HSD on alleged concerns: Market share of PSO in HSD has declined by a significant 7 percent to 53 percent in nine months FY14 likely on account of allegation on the Company to deal in substandard product. 
However, the Company strongly condemned the involvement in any mal-practice and experts were expecting the same would be able to enhance its market share in the product going forward, added an analyst. Besides that the Company reflected an improvement of 300 basis points system (bps) in market share of Mogas while a drop of 200 bps in the market share of FO in nine months FY14 was observed. 
Highest MoM growth of 24 percent was evident in FO volume of the Company while on nine months basis Mogas takes the lead with volumetric growth of 12 percent Year on Year (YoY). 
Attock Petroleum continues to be a rising star while Shell remains assorted: During nine months FY14, all three major products sold by APL witnessed a shiny double digit growth where Mogas, HSD and FO volumes grew by 40 percent, 24 percent, 12 percent YoY respectively. This colossal volume growth improved the market share of OMC in all three products by 200 bps in HSD and Mogas and 100 bps in FO. 
Shell managed to increase its market share of Mogas by 100bps to 19 percent in nine months FY14 while its share in HSD dropped by 100 bps to 14 percent. Going forward, analyst expects the approaching summer season will lead to higher off-take of FO to Independent Power Producers in order to keep electricity deficit at minimal. Furthermore, HSD sale is likely to fuel up on higher irrigation needs in upcoming summer season, he added.

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