KARACHI: The sale of petroleum products in Pakistan hit an 18-year low in the financial year ending June 30, 2024, according to official data.
Petroleum product sales declined by 8.0% year-on-year (YoY) to 15.28 million tonnes during FY24, attributed to the economic slowdown and the smuggling of petroleum products, impacting legal sector sales.
Oil sales data showed that in June 2024, the OMC industry’s sales increased by 8.0% YoY and 4.0% month-on-month (MoM) to 1.45 million tonnes. However, total sales for FY24 settled at 16.61 million tonnes, marking an 8.0% YoY decline, the lowest since FY06.
Tahir Abbas, head of research at Arif Habib Limited (AAHL), cited the economic slowdown as the primary factor for the decrease in petroleum product sales. Inflation further reduced consumer purchasing power, exacerbated by skyrocketing local petroleum prices.
Abbas also highlighted the impact of smuggling on oil marketing companies, which struggled throughout the year. Additionally, the low consumption of furnace oil, as power plants reduced its use for electricity generation, contributed to the overall sales decline.
Petrol sales dipped by 4.0% during the fiscal year under review, though June saw a 9.0% surge. High-speed diesel (HSD) sales decreased by 2.0% for FY24, despite a 5.0% growth in June compared to the previous year. Furnace oil sales plunged by 49% in FY24 but grew by 6.0% in June.
Sales figures for leading OMCs showed Pakistan State Oil (PSO) sales dropped by 9.0% during the fiscal year, remaining flat in June. Attock Petroleum sales declined by 5.0% for the full fiscal year and 15% in June. Shell saw an 11% drop in FY24 sales, with a 12% increase in June. Hascol sales decreased by 8.0% for FY24 and 37% in June compared to the previous fiscal year.
Story by Tanveer Malik
