Karachi, November 02, 2021 (PPI-OT): Pakistan OMC volumes increase by 17%YoY for Oct’21

OMC sales clocked in at 2.0mn tons, up 17%YoY while on MoM basis, a meagre improvement of 1%MoM was witnessed. The increase was led by HSD with an increase of 25/18% YoY/MoM where we believe apart from improved business activity, curb in smuggling also played a part after border controls were increased.

Overall, OMC volumes have increased by 22%YoY for 4MFY22 where FO witnessed the highest increase of 32%YoY on the back of increased power generation while MS/HSD witnessed an increase of 14/26%YoY.

Market shares remain fluid with PSO/APL/HASCOL/SHEL accounting for market shares of 52/8/1/8% during Oct’21 where a comparison with Oct’20 reveals increasing share of PSO by 7ppts while market share of APL/HASCOL decreased by 2/4ppts.

We expect OMC volumes to tread the same path with economic activity picking up pace while we believe the incentives provided in FY22 Budget to agriculture sector along with focus on infrastructure spending can provide a significant uplift to volumes in medium term.