Petrol consumption grows by 20pc in September

KARACHI: The consumption of petroleum products recorded substantial growth of twenty percent in September this fiscal year compared to the same period last fiscal year, driven by increased sales of petrol and high-speed diesel (HSD).

During September FY25, the sale of petroleum products surged to 1.27 million tonnes from 1.06 million tonnes in the same month of the previous year. “The increase in sales of petroleum products, especially HSD, is attributed to the legal sector following action against smuggling. It is also linked to a recovery in economic activity within the country,” industry experts stated.

In addition to this year-on-year growth, petroleum product sales recorded a 5.0 per cent increase compared to sales figures from August of this fiscal year, according to oil sales data released on Tuesday.

Specifically, the sale of HSD jumped by 25 per cent to reach 0.49 million tonnes compared to 0.39 million tonnes in the previous year. The sale of petrol also showed significant growth, rising by 22 per cent to 0.63 million tonnes during the month, up from 0.52 million tonnes in the same month last year.

Conversely, the sale of furnace oil sharply fell by 18 per cent during the month due to reduced consumption for electricity generation in the country. During the first quarter of the current fiscal year, the sale of petroleum products decreased by 3.0 per cent to 3.68 million tonnes, compared to 3.81 million tonnes in the corresponding quarter of the previous financial year.

This decline was primarily due to a significant drop in the sale of furnace oil, which plummeted by 39 per cent. Petrol sales remained flat during the quarter, while HSD sales experienced a slight decrease of one percent.

In September 2024, the OMC (oil marketing company) industry reported sales climbing by 20 per cent year-on-year and 5.0 per cent month-on-month to settle at 1.27 million tonnes. Consequently, total sales during the first quarter of FY25 clocked in at 3.68 million tons, reflecting a 3.0 per cent decrease year-on-year.

A company-wise breakdown of oil sales showed that Pakistan State Oil (PSO) recorded a 4.0 per cent increase in sales in September compared to the same month last fiscal year. However, PSO’s sales fell by 15 per cent in the first quarter of this fiscal year compared to the same quarter of the previous financial year.

Attock Petroleum Limited’s sales remained flat in September, down by 19 per cent in the first quarter. Shell Pakistan’s sales also remained flat in September and the first quarter. In contrast, Hascol’s sales stayed flat in September but increased by 19 per cent in the first quarter.