KARACHI: Total POL sales in the country increased by 39 percent on month-on-month basis in May-2020 to 1.48 million tons mainly on account of easing lockdowns and a substantial decline in prices of retail fuels.

This rise in demand was mainly driven by a 46 percent MoM increase in Motor Spirit (MS) while High Speed Diesel (HSD) demand rose by 25 percent.

The economic stabilization measures during FY20 followed by the lockdowns have kept HSD sales depressed during the 11 months of FY20, down 14 percent on year-on-year basis during the period. Even though declines have been witnessed across all major products, the dip in HSD led the 13 percent decline in total POL sales during year-to-date in FY20.

On a company wise basis, all listed companies have experienced depressed sales during the 11 months of FY20. Nevertheless, Hascol Petroleum Limited saw the largest decline of 46 percent, causing it to lose nearly 4 percentage points in market share (mostly taken up by PSO and other smaller OMCs).

“Moving forward, the low retail prices coupled with any further leniency in lockdowns should help in recovery of POL sales," Ali H Zaidi, an analyst at JS Global Capital said.

Copyright Business Recorder, 2020