In August 2024, Pakistan’s Oil Marketing Companies (OMCs) saw a notable shift in sales, with oil sales reaching 1.2 million tons, marking a 14% year-on-year (YoY) decrease. This decline is attributed to the monsoon season, which impacted overall sales, although a 3% month-on-month (MoM) rise was observed due to a full working month following the Moharram holidays, according to a report by Topline Securities.

Total sales for the first two months of the fiscal year 2025 (2MFY25) amounted to 2.4 million tons, reflecting a 12% YoY decline compared to 2.8 million tons in the same period last year. Ex-FO sales for 2MFY25 totaled 2.3 million tons, a 9% YoY decrease.

Product-Specific Trends:

Motor Spirit (MS): Sales decreased by 7% YoY but increased by 6% MoM to 625,000 tons. This was influenced by a reduction in petrol prices and the resumption of activities such as the start of the school season.

High-Speed Diesel (HSD): Experienced a 17% YoY and a 2% MoM decline, primarily due to the monsoon season.

Furnace Oil (FO): Sales dropped by 45% YoY and 17% MoM to 65,000 tons, attributed to reduced power generation from FO-based plants.

Company-Specific Insights:

Attock Petroleum (APL): Recorded sales of 114,000 tons in August 2024, a 24% YoY decrease, driven by a 63% YoY fall in FO sales, despite a 12% MoM increase.

Pakistan State Oil (PSO): Saw a 27% YoY and 3% MoM decline to 528,000 tons. PSO’s market share in HSD and MS also decreased.

Shell Pakistan (SHEL): Reported a 6% YoY decline but a 7% MoM increase to 92,000 tons.

HASCOL: Sales rose to 42,000 tons, up 18% YoY and 9% MoM.

The government has set a Petroleum Development Levy (PDL) collection target of Rs. 1.28 trillion for FY25, with Rs. 166 billion (13%) collected in the first two months.