KARACHI: The government has exceeded its annual petroleum development levy (PDL) collection target, amassing Rs907 billion in the first 11 months of the current fiscal year, against a target of Rs869 billion. This surge comes as demand for petroleum products peaked to a nine-month high of 1.4 million tons in May 2024 due to a price reduction, bringing total consumption to 13.8 million tons from July to May 2023-24, according to Topline Research.
Topline Research analyst Myesha Sohail noted that the monthly average tax collection of Rs80-85 billion could push the total to Rs990 billion to Rs1 trillion by the end of the fiscal year. The government levies PDL of Rs60 per litre on petrol and diesel.
Oil marketing companies (OMCs) saw substantial growth, with sales reaching 1.39 million tons in May 2024, the highest in nine months, marking a 7% year-on-year increase and a 26% rise month-on-month. Diesel sales alone surged by 18% year-on-year to 643,000 tons, driven by the harvesting season and a Rs16.3 per litre price drop. The crackdown on petroleum smuggling also boosted high-speed diesel (HSD) sales.
Petrol (motor spirit/MS) sales increased by 1% year-on-year and 14% month-on-month to 607,000 tons, although the 11-month sales declined by 5% year-on-year to 6.4 million tons. The price of petrol dropped by Rs20.84 per litre in May 2024. However, furnace oil sales fell by 29% year-on-year to 69,000 tons due to reduced power generation from furnace oil-based plants.
Company-Wise Sales
Attock Petroleum Limited (APL): Recorded sales of 140,000 tons, up 14% year-on-year and 42% month-on-month, driven by HSD demand. APL’s market share in HSD sales rose to 9.8%.
Pakistan State Oil (PSO): Saw a 11% year-on-year and 19% month-on-month rise in sales, reaching 665,000 tons in May 2024. PSO’s market share in HSD and MS was 49.9% and 43.8%, respectively.
Shell Pakistan: Registered a 13% year-on-year and 23% month-on-month increase in sales, totaling 100,000 tons. Its market share remained steady in both MS and HSD.
Hascol Petroleum: Sales stood at 41,000 tons, up 51% month-on-month but down 39% year-on-year. Its market share improved to 4% in MS and 2.6% in HSD.
