The sale of petroleum products fell to an 18-year low in the financial year ending June 30, 2024, according to official data, with sales declining by 8.0% year-on-year (YoY) to 15.28 million tonnes, impacted by economic slowdown and smuggling.
In June 2024, oil marketing companies (OMC) reported an 8.0% YoY and 4.0% month-on-month (MoM) increase in sales, reaching 1.45 million tonnes.
Despite this monthly increase, total sales for FY24 settled at 16.61 million tonnes, down by 8.0% YoY, marking the lowest sales since FY2006.
Analysts attribute this decline in sales to the economic slowdown and high prices which reduced consumer purchasing power. They also highlight the impact of smuggling on the legal sales of oil in the market.
The decline in overall sales was also due to reduced consumption of furnace oil by power plants.
Data showed petrol sales dropped by 4.0% during FY24, though they increased by 9.0% in June. High-speed diesel (HSD) sales fell by 2.0% in FY24 but grew by 5.0% in June. Furnace oil sales plunged by 49% during the fiscal year but saw a 6% growth in June.
Leading OMCs reported mixed results. Pakistan State Oil (PSO) sales dropped by 9.0% for the full fiscal year and remained flat in June.
Attock Petroleum recorded a 5.0% decline for FY24 and a 15% drop in June. Shell’s sales decreased by 11% in FY24 but increased by 12% in June. Hascol’s sales fell by 8.0% for the fiscal year and 37% in June.
