Petroleum product sales rise in H1 FY25 despite December slowdown

KARACHI: The sale of petroleum products increased by 4.0 per cent in the first half of the current fiscal year, driven by higher consumption of high-speed diesel (HSD) and petrol.

From July to December FY25, petroleum product sales totalled 8.03 million tonnes, compared to 7.68 million tonnes during the same period last year. According to industry data, sales rose 3.0 per cent year-on-year in December FY25, reaching 1.28 million tonnes compared to 1.24 million tonnes in December FY24. However, December sales marked a sharp 19 per cent month-on-month decline from November’s 1.58 million tonnes.

Industry analysts attributed the monthly drop to reduced demand for HSD following the end of the harvesting season, which had driven November sales to record highs. In November, the country imported 332,000 tonnes of HSD -- the highest monthly import so far this fiscal year -- to meet the surge in demand.

During the first six months of FY25, petrol sales rose by 5.0 per cent, and HSD sales increased by 10 per cent. In contrast, furnace oil consumption plunged by 38 per cent, largely due to its reduced use in power generation. “Electricity demand has decreased during the winter season, and hydropower and local coal have adequately met the power sector’s needs,” industry sources explained.

Furnace oil sales in December fell 48 per cent year-on-year, while HSD and petrol sales declined by 27 per cent and 15 per cent, respectively, compared to November. Among major oil marketing companies, Pakistan State Oil (PSO) saw a 28 per cent decline in December sales compared to November but recorded a 4.0 per cent increase over the first half of FY25. Attock Petroleum’s sales dropped 11 per cent during the six-month period, while Shell Pakistan reported a 6.0 per cent growth. The industry faces challenges in sustaining growth amid seasonal fluctuations and shifting energy dynamics, but the uptick in HSD and petrol sales reflects resilience in key segments.