Karachi, October 1, 2024 – Pakistan’s petroleum sales witnessed a significant surge of 20% year-on-year (YoY) in September 2024, reaching a total of 1.27 million tons, according to data released by analysts at Arif Habib Limited.
The impressive growth in sales is largely attributed to heightened demand spurred by notable price reductions in Motor Spirit (MS) and High-Speed Diesel (HSD), which saw YoY price drops of 20.19% and 20.06%, respectively.
The offtake of Motor Spirit, commonly known as petrol, increased substantially by 22% YoY in September 2024, settling at 0.63 million tons. The decline in fuel prices stimulated demand, contributing to this sharp rise in sales. Similarly, the demand for High-Speed Diesel rose even more sharply, recording a 25% YoY increase to 0.49 million tons for the same period. However, sales of Furnace Oil (FO) experienced a steep 18% decline, dropping to 0.07 million tons, primarily due to a reduced need for FO-based power generation.
On a month-on-month (MoM) basis, petroleum sales also saw an increase of 5% in September 2024 compared to August 2024, driven by diminished rainfall in August that had previously dampened demand. MS sales improved by 2% MoM, while HSD dispatches showed a more robust 8% MoM growth. FO, despite its annual decline, registered a modest 7% MoM uptick during September 2024.
The first quarter of fiscal year 2024-25 (July-September) painted a mixed picture for Pakistan’s petroleum market, with total sales slipping by 3% YoY to 3.68 million tons, compared to 3.81 million tons in the same period last year (SPLY). HSD and FO sales declined, while MS sales remained stable. Product-wise data revealed that MS sales clocked in at 1.85 million tons, HSD at 1.42 million tons, and FO at 0.21 million tons.
Pakistan State Oil (PSO) Sales Rise by 8% YoY in September 2024
Among companies, Pakistan State Oil (PSO) led the charge with an 8% YoY growth, reporting sales of 0.55 million tons in September 2024. PSO’s sales of MS, HSD, and FO grew by 8%, 6%, and 17% YoY, respectively. Other oil marketing companies (OMCs) such as HASCOL and SHEL also experienced strong YoY growth, with sales up 76% and 17%, respectively. Conversely, APL’s dispatches declined by 8% YoY during the same period.
However, the first quarter of FY25 proved challenging for PSO and APL, with their sales contracting by 15% and 19% YoY, respectively. Meanwhile, SHEL maintained stable sales at 0.27 million tons, and HASCOL stood out with a remarkable 19% YoY growth in offtake.
PSO’s market share shrank by 6.11% in 1QFY25, falling to 44.0% from 50.2% in 1QFY24. Similarly, APL’s market share dipped by 1.7%, arriving at 9.0% YoY. Conversely, SHEL and HASCOL’s market shares rose to 7.4% (from 7.1% SPLY) and 3.3% (from 2.7% SPLY), respectively. Notably, other OMCs saw a substantial 6.9% jump, boosting their market share to 36.3% in 1QFY25.
