Petroleum sales rise 2% in February

KARACHI: Pakistan’s petroleum product sales grew by 2.0 per cent in February 2025, driven by a resurgence in petrol demand and government curbs on smuggled petroleum products.

Total sales stood at 1.14 million tonnes during the month, up from 1.11 million tonnes in the same period last year. Analysts attributed the increase to lower petrol prices, restrictions on smuggled Iranian fuel and a rise in automobile sales.

According to industry data, high-speed diesel (HSD) sales declined by 4.0 per cent year-on-year (YoY) to 0.43 million tonnes in February 2025, compared to 0.45 million tonnes in the same month of the previous fiscal year, amid subdued overall demand.

Meanwhile, motor spirit (MS) sales rose by 2.0 per cent YoY to 0.56 million tonnes. Furnace oil (FO) sales increased by 7.0 per cent YoY, reaching 0.05 million tonnes. On a month-on-month (MoM) basis, petroleum sales fell by 18 per cent in February, attributed to the shorter month, reduced consumption due to higher MS and HSD prices, and lower reliance on FO-based power generation. MS, HSD and FO sales dropped by 11 per cent, 29 per cent, and 9.0 per cent MoM, respectively.

During the first eight months of the current fiscal year, total petroleum product sales increased by 4.0 per cent YoY, reaching 10.55 million tonnes compared to 10.18 million tonnes in the same period last year.

MS and HSD recorded growth, while FO sales declined. Volumetric sales for MS, HSD and FO stood at 4.93 million tonnes, 4.49 million tonnes, and 0.46 million tonnes, respectively. Pakistan State Oil’s (PSO) sales declined by 17 per cent YoY to 0.47 million tonnes in February.

The company’s MS, HSD and FO sales dropped by 13 per cent, 24 per cent, and 79 per cent YoY, respectively. Similarly, Attock Petroleum Limited’s (APL) sales fell by 10 per cent YoY to 0.1 million tonnes.

In the first eight months of the current fiscal year, PSO and APL’s sales dropped by 6.0 per cent and 21 per cent YoY, respectively. PSO’s market share in July-February declined by five percentage points to 45 per cent, compared to 50 per cent in the same period last year. APL’s market share also decreased by 1 percentage point to 9.0 per cent.

In contrast, Gas and Oil Pakistan Ltd (GO) saw its market share surge to 10 per cent in the first eight months, up from 3.0 per cent in the same period last year. Meanwhile, the market share of other oil marketing companies (OMCs) declined by 1 percentage point to 26 per cent.

The petroleum development levy (PDL) collection reached Rs 753 billion in the first eight months of the current fiscal year. The federal government has set a PDL collection target of Rs 1,281 billion for the fiscal year.