Arif Habib Limited has announced in a report that Pakistan’s oil and gas marketing sector has posted its highest ever growth of 44 percent year-over-year.
This growth comes despite a low base. The total petroleum and lubricant sales were recorded at 1.49 million tons in March 2021, showing a massive growth of 44 percent on an annual comparison, and a growth of six percent on monthly comparison. This may be explained by the fewer working days in February 2021 and the complete lockdown in March 2020 as compared to March 2021.
As outlined by the report, the other factors that contributed to this growth are the recovery in economic activity increasing retail sales, a surge in trade activities and better agricultural yields resulting in higher HSD sales, automobile outtake increase in double digits, a preference for private transport over public transport owing to the risk of contracting the coronavirus virus, and stricter border controls reducing the supply of illegal and dumped oil smuggled into the country.
For the nine months from July 2020 to March 2021, the sales of petroleum increased by 15 percent on an annual comparison to be recorded at 14.15 million tons, up from 12.27 million in the previous fiscal year.
The company-wise analysis shows the state-owned Pakistan State Oil (PSO) to be the best performer with a growth of 79 percent in sales in March 2021, followed by Shell and Attock Petroleum Limited (APL) with growths of 36 percent and 12 percent growth respectively.
PSO also increased its market share by 2.3 percent to cover 43.9 percent of the market but Shell and APL lost 1.7 percent and 0.5 percent respectively of their market shares.
Conversely, the newer players also posted an improvement of an increase of two percent in their market shares, and now cover 32.4 percent of the market.
Source: Pro Pakistani