Pakistan’s petroleum sales surge as prices decline

Pakistan’s petroleum products sales surged in September due to higher demand merging because of substantial decline in fuel prices.

Petroleum sales reached 1.27 million tons in September, marking a 20% increase compared to the same period last year. This surge is attributed to higher demand driven by a substantial decline in prices for Motor Spirit (MS) and High-Speed Diesel (HSD), which dropped by 20.19% and 20.06%, respectively.

The offtake of MS (petrol) saw a notable rise of 22%, settling at 0.63 million tons, while HSD dispatches increased by 25% to 0.49 million tons. However, sales volumes for Furnace Oil (FO) fell by 18%, reaching 0.07 million tons due to reduced demand for FO-based power generation.

On a monthly basis, petroleum sales experienced a 5% uptick in September, following lower demand in August due to higher rainfall. MS sales climbed by 2%, HSD offtake improved by 8%, and FO dispatches rose by 7% compared to August 2024.

During the first quarter of FY25, total petroleum product sales decreased by 3% to 3.68 million tons, compared to 3.81 million tons in the same period last year.

Product-wise data revealed a decline in HSD and FO sales, while MS sales remained stable, with volumetric sales of MS, HSD, and FO recorded at 1.85 million tons, 1.42 million tons, and 0.21 million tons, respectively.

In the first quarter of FY25, PSO and APL’s petroleum sales declined by 15% and 19%, respectively, while SHELL’s sales remained stable at 0.27 million tons. HASCOL stood out with a 19% growth in offtake.

PSO’s market share significantly dropped by 6.11% to 44.0%, compared to 50.2% in the first quarter of FY24. APL’s market share also decreased by 1.7%, arriving at 9.0% year-on-year. Conversely, SHELL and HASCOL saw their market shares increase, while other Oil Marketing Companies (OMCs) witnessed a substantial jump of 6.9%, reaching 36.3% in the first quarter of FY25.