Pakistan’s OMC sales data shows growth in petrol and diesel during first seven months of FY25

Pakistan's government efforts to curb smuggling started to yield dividends, where diesel and petrol sales showed a growth of 11% and 5% respectively.

Diesel sales increased due to higher demand from farmers during the current season, along with stricter measures to curb smuggling, further boosting sales.

The Pakistan Petroleum Dealers Association reports that up to 35% of diesel in Pakistan is smuggled from Iran, while the Energy Ministry estimates a daily influx of 4,000 tons, resulting in a monthly revenue loss of Rs10.2 billion.

On the other hand, the country's demand for furnace oil (FO) has declined to its lowest level since data last observed in 1996.

Industry analysts attribute the slump in furnace oil to decreased consumption (especially FO-based power generation), reflecting a shift toward alternative energy sources in the power sector with little to no generation from conventional power plants.

Sales of petroleum products in Pakistan remained unchanged in January as compared to the same month last year, as higher sales of high-speed diesel (HSD) and motor spirit (MS) offset a sharp decline in furnace oil (FO) volumes, according to data compiled by Arif Habib Limited.

Total sales for the oil marketing companies (OMCs) stood at 1.38 million tons in January, unchanged from a year earlier but up 8% from December. HSD sales rose 17% compared to the same month last year to 0.60 million tons, while MS saw a modest 1% increase to 0.62 million tons. However, FO sales plunged 68% to 0.06 million tons.

Among individual companies, Pakistan State Oil (PSO), the country’s largest OMC, reported a 10% annual drop in total sales, reaching 0.59 million tons. Its diesel sales declined 5%, while gasoline sales fell 11%.

Attock Petroleum Ltd. (APL) and Shell Pakistan Ltd. (SHEL) showed mixed performance. APL’s total sales dropped 14% year-over-year, with MS down 6% and FO tumbling 77%. SHEL, however, recorded a 4% increase, with diesel sales up 7% and MS down 6%.

HASCOL Petroleum Ltd. recorded the most significant growth among listed OMCs, with a 120% surge in total sales. Diesel volumes soared 193% from the previous year, while MS sales jumped 68%.