OMC sales drop 18% MoM in February despite slight annual growth

Pakistan’s oil marketing companies (OMCs) recorded a 2% year-on-year (YoY) increase in sales for February 2025, reaching 1.14 million tons, though volumes declined 18% month-on-month (MoM). Adjusted for fewer days, the daily average offtake stood at 40,600 tons per day, down 7.3% from the seven-month FY25 average.

According to data compiled by the brokerage firm AKD Securities, sales of motor spirit (MS) rose 2% YoY, signaling a gradual recovery in transport activity. High Octane Blending Component (HOBC) demand surged 284% YoY to 33,000 tons, as consumers shifted to premium fuel due to the narrowing price difference of Rs5 per liter with regular unleaded fuel. 

In contrast, high-speed diesel (HSD) sales declined by 4% YoY and 29% MoM to 428,000 tons, as demand normalized following the end of the Rabi sowing season.

Cumulative OMC sales for July-February FY25 stood at 10.5 million tons, reflecting a 4% YoY growth, with retail fuel sales—MS, HSD, and HOBC—reaching 9.6 million tons, marking an 8% YoY increase.

State-owned Pakistan State Oil (PSO) faced a 17% YoY and 21% MoM decline in sales, with MS and HSD volumes dropping 13% and 24% YoY, respectively. As a result, PSO’s retail market share fell to 40% in February, down from 48.6% in the same period last year (SPLY). 

The decline was attributed to rising sales by GO Petroleum Limited, which benefited from a fuel supply agreement with a major Middle Eastern supplier. However, PSO’s HOBC sales surged 239% YoY, securing a 33.3% share in the premium fuel segment, slightly below last year’s 37.7%.

Among listed firms, HASCOL stood out with a 60% YoY growth in total sales, capitalizing on a low base from the previous year. Meanwhile, PSO and Attock Petroleum Limited (APL) continued to face competitive pressure from smaller retail fuel companies. 

In February, market shares of PSO, APL, WAFI, and CNERGY stood at 41.4%, 9.0%, 7.4%, and 3.0%, respectively.

According to AKD Securities, the sector is projected to see 3% YoY growth in FY25, supported by lower fuel prices and recovering commercial and industrial activity.