November 2024 petroleum sales surge 15% YoY to 1.58 million tons, the highest in over two years. Macroeconomic stabilization, reduced smuggling, and lower prices drive demand.
High-Speed Diesel (HSD) sales reach a 30-month high, fueled by seasonal agricultural demand.
KARACHI: Pakistan’s petroleum product sales hit a 25-month peak in November 2024, with a 15% year-on-year (YoY) increase to 1.58 million tons, driven by lower prices, economic recovery, and stricter measures against smuggling.
Cumulative sales for the first five months of FY25 stood at 6.8 million tons, reflecting a 5% YoY growth. Excluding furnace oil (FO), sales in November reached 1.54 million tons, marking a 19% YoY and 7% month-on-month (MoM) increase.
Product Breakdown:
Motor Spirit (MS): Sales rose 17% YoY to 666,000 tons, steady from the previous month.
High-Speed Diesel (HSD): Demand surged to 788,000 tons, a 30-month high, thanks to a 15% YoY price cut and heightened agricultural activity.
Furnace Oil (FO): Sales plummeted 55% YoY and 36% MoM to 37,000 tons, reflecting reduced reliance on FO-based power generation.
Performance by Companies:
Pakistan State Oil (PSO): November sales increased by 12% YoY and 15% MoM to 799,000 tons, with market shares in HSD and MS rising to 54.4% and 44.6%, respectively. PSO’s overall market share rose to 51%, up from 47% in October.
Attock Petroleum Limited (APL): Sales reached 131,000 tons, up 8% YoY and 5% MoM, led by a notable 31% YoY increase in HSD sales.
Shell Pakistan (SHEL): Sales rose 12% YoY to 103,000 tons, despite a 2% MoM decline.
HASCOL: Sales climbed 6% YoY to 34,000 tons but dropped 25% MoM.
Analyst Myesha Sohail of Topline Securities noted that the government has already collected Rs 469 billion (37%) of its Rs 1.28 trillion Petroleum Development Levy (PDL) target for FY25, underlining the sector’s pivotal role in fiscal consolidation.
This surge in sales reflects improving market dynamics and seasonal demand, offering a positive outlook for the industry.
