Oil marketing companies in Pakistan record 11.4 per cent sales decline

ISLAMABAD: The sales of oil marketing companies (OMCs) in Pakistan fell by 11.4 per cent year-on-year in July 2024, reaching 1.2 million metric tonnes (MTs), down from 1.35 million MTs in July 2023, according to the Oil Companies Advisory Council (OCAC).

Month-on-month, oil sales also declined by 17.3 per cent, compared to 1.45 million MTs in June 2024.

Breaking it down by product:

– Motor Spirit (MS) sales dropped by 9.9 per cent to 0.59 million MTs

– High-Speed Diesel (HSD) fell by 5.9 per cent to 0.46 million MTs

– Furnace Oil (FO) saw a significant decrease of 46.3 per cent, totalling 77,418 MTs

The decline in sales is attributed to increased prices of MS and HSD, which has led to reduced consumption.

Additionally, the availability of smuggled petroleum products from Iran and a decreased demand for FO in power generation have contributed to the downturn, as noted by Arif Habib Limited (AHL).

AHL’s data also reveals that Pakistan State Oil (PSO) experienced a 19 per cent drop in sales year-on-year, with reductions in MS, HSD, and FO sales by 22 per cent each.

Other companies like SHEL, HASCOL, and APL also reported declines in sales, with decreases of 8 per cent, 12 per cent, and 23 per cent respectively.

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