Karachi, January 2, 2025 – Pakistan’s petroleum sales recorded a notable 3% year-on-year (YoY) increase in December 2024, bolstered by strict measures to curb smuggling from Iran.
Analysts at Arif Habib Limited attributed this growth to heightened enforcement against illicit fuel trade and a boost in diesel demand.
The country’s Oil Marketing Companies (OMCs) sold 1.28 million tons of petroleum products during December 2024, showcasing a steady YoY rise. High-Speed Diesel (HSD) sales were the main driver, surging by 12% YoY due to a retail price decline of 9% YoY and reduced availability of smuggled Iranian diesel.
Conversely, Motor Spirit (MS-Petrol) sales experienced a slight dip of 1% YoY, amounting to 0.57 million tons. Meanwhile, Furnace Oil (FO) sales plummeted by 48% YoY to 0.04 million tons, reflecting decreased demand for FO-based power generation.
On a month-on-month (MoM) basis, overall petroleum sales fell by 19% in December 2024. This decline was attributed to reduced mobility due to severe winter weather and higher HSD consumption in November for the Rabi cropping season. MS and HSD offtake dropped by 15% and 27% MoM, respectively, while FO sales increased by 12% MoM.
During the first half of the fiscal year 2024-25 (1HFY25), total petroleum product sales rose by 4% YoY to 8.03 million tons compared to 7.68 million tons in the same period last year. Product-wise, MS and HSD sales saw growth, while FO sales declined. MS, HSD, and FO volumes for 1HFY25 were recorded at 3.75 million tons, 3.46 million tons, and 0.35 million tons, respectively.
Company-wise, Pakistan State Oil (PSO) witnessed a 4% YoY decline in December sales, amounting to 0.60 million tons. While PSO’s MS and HSD offtake dropped by 9% and 4% YoY, FO sales increased by 17% YoY. Attock Petroleum Limited (APL) recorded a 14% YoY drop to 0.11 million tons, while Shell and HASCOL improved by 5% and 59% YoY, respectively.
In 1HFY25, PSO and APL experienced sales declines of 4% and 11% YoY, respectively, while Shell and HASCOL grew by 6% and 21% YoY. PSO’s market share contracted to 46.0% from 50.1% YoY, while APL’s share dropped to 8.6%. Conversely, Shell and HASCOL’s shares rose slightly, and other OMCs saw a significant 5.1% market share gain, reaching 35.2%.
The increase in HSD sales contributed to a 5% YoY rise in Petroleum Development Levy (PDL) collection, reaching approximately PKR 87 billion in December 2024. However, on a MoM basis, PDL dropped by 21% due to reduced white oil sales. Cumulatively, PDL collection for 1HFY25 stood at around PKR 550 billion, reflecting a 14% YoY growth.