Pakistan’s oil marketing companies (OMCs) experienced a 14% year-on-year decline in sales for August 2024, with total volumes reaching 1.21 million tons, largely due to the impact of the monsoon season. However, there was a 2% month-on-month increase.
During the first two months of the fiscal year 2024-25 (2MFY25), total sales fell by 12% year-on-year, amounting to 2.4 million tons compared to 2.8 million tons in the same period last year.
Excluding furnace oil, sales in August 2024 stood at 1.2 million tons, marking an 11% year-on-year decrease, but with a 3% rise compared to July 2024.
Over the two-month period, sales excluding furnace oil declined by 9% year-on-year, totaling 2.3 million tons.
Motor Spirit (MS) sales in August 2024 decreased by 7% year-on-year but saw a 6% month-on-month increase, reaching 625,000 tons. The increase in sales is attributed to a reduction in petrol prices by Rs14.64 per liter, bringing the price down to Rs260.96 per litre, and the resumption of activities with the start of the school season.
In contrast, High-Speed Diesel (HSD) sales dropped by 17% year-on-year and 2% month-on-month, reflecting the dampening effects of the monsoon season on demand.
Furnace Oil (FO) sales plummeted by 45% year-on-year and 17% month-on-month to 65,000 tons in August 2024, due to reduced power generation from FO-based power plants.
Among the major companies, Attock Petroleum (APL) reported sales of 114,000 tons in August 2024, reflecting a significant 24% year-on-year decline, primarily driven by a 63% drop in furnace oil sales.
However, on a month-on-month basis, APL’s sales rose by 12%, supported by a 37% increase in furnace oil sales.
Pakistan State Oil (PSO) saw a 27% year-on-year and 3% month-on-month decline in sales, reaching 528,000 tons in August 2024. PSO’s market share in High-Speed Diesel and Motor Spirit dropped to 44.1% and 40.3%, respectively, representing a decline of 192 basis points and 102 basis points month-on-month. Overall, PSO’s market share fell from 46% in July 2024 to 43% in August 2024.
Shell Pakistan (SHEL) recorded a 6% year-on-year decrease in sales but a 7% month-on-month increase, totaling 92,000 tons in August 2024.
Meanwhile, HASCOL reported an 18% year-on-year and 9% month-on-month increase in sales, reaching 42,000 tons.
In addition, the government has set a Petroleum Development Levy (PDL) collection target of Rs1.28 trillion for FY25. Based on initial calculations, Rs166 billion, or 13% of the target, has been collected in the first two months of the fiscal year.
