In a positive sign for Pakistan’s economy, oil consumption increased by 3% year-on-year in December 2024, according to a recent report by Topline Securities. This uptick in petroleum product sales suggests a gradual economic recovery and improved consumer spending power in the country.
The report reveals that Pakistan’s oil marketing companies (OMCs) recorded sales of 1.28 million tons in December 2024, representing a 3% increase compared to the same month in 2023. This growth is attributed to several factors, including lower petroleum product prices, macroeconomic stabilization, and a decline in smuggling activities.
When excluding furnace oil (FO), the increase in sales becomes even more pronounced. Ex-FO sales in December 2024 reached 1.2 million tons, reflecting a robust 7% year-on-year rise. This indicates that the growth is primarily driven by consumer-oriented fuels rather than industrial usage.
One of the most encouraging signs in the report is the performance of Motor Spirit (MS), commonly known as petrol. While the report shows a slight 1% year-on-year decline in December 2024, the overall trend for the first half of the fiscal year 2025 (1HFY25) is positive. Petrol sales for the first half of the fiscal year ending June 30, 2025 totaled 3.75 million tons, marking a 5% increase compared to the same period last year.
This growth in petrol consumption is particularly significant as it primarily reflects usage in domestic vehicles. The increase suggests a recovery in consumer spending power and confidence, as more Pakistanis are likely using their personal vehicles for transportation and leisure activities. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
