AKD Securities Limited – AKD Daily (November 23, 2022)
Karachi, November 23, 2022 (PPI-OT): Pakistan OMCs: POL imports drop 29.5% in 4MFY23
Past four months have seen the demand for refined petroleum products drop by 21.6% majorly due to higher pump prices, impact due to floods and an overall economic slowdown.
A 29.5% decline in POL product imports was witnessed as well in the first four months (Jul-Oct), compared to SPLY, as quantity imported stood at 6.06mn tons during the period vs. 8.6mn tons during 4MFY22.
The drop in global POL consumption is being largely offset by increased utilization in industries and power plants as a substitute for natural gas, which still remains at its multi-year highs (US$26.4/mmbtu, up ~400% vs. 3-yr avg.)
Locally, the situation could’ve been dire as well if not for Nuclear and Hydel generation making a comeback in the power mix during the last 4 months (avg. share in mix 4MFY23: 34%/16.5% vs. 18%/13.5% in Jan-June’22 avg. for Hydel/Nuclear).