Petrol sales in Pakistan dip by 15 per cent in December

ISLAMABAD: In December, Pakistan’s oil sales took a bit of a hit, dropping by 19 per cent compared to the previous month. However, when looking at the year as a whole, there was a slight 3 per cent increase, with total sales reaching 1.28 million tonnes.

Over the first half of the financial year 2025 (1HFY25), sales actually saw a 4 per cent rise, totalling 8 million tonnes, compared to 7.68 million tonnes in the same period last year.

Arif Habib Ltd (AHL) noted that overall petroleum product sales grew by 2 per cent throughout 2024, hitting 15.62 million tonnes.

Petrol sales in December, however, didn’t follow the same trend, falling by 15 per cent from November and slipping 1 per cent compared to last year, totalling 0.57 million tonnes. Still, for the first half of FY25, petrol sales managed to grow by 5 per cent, reaching 3.75 million tonnes.

High-speed diesel (HSD) sales faced an even sharper drop in December, falling 27 per cent from the previous month. But when comparing year-on-year, sales rose by 12 per cent, amounting to 0.57 million tonnes.

On the other hand, furnace oil sales saw a bit of a rebound, rising 12 per cent month-on-month in December, although they were still 48 per cent lower than in the same month last year, with total sales at 0.04 million tonnes.

Interestingly, November 2024 told a different story, as petroleum sales in Pakistan surged to a 25-month high, hitting 1.58 million tonnes.

This spike was driven largely by a government crackdown on smuggled Iranian fuel and a notable drop in petrol and diesel prices. This marked a 15 per cent increase compared to November 2023, reflecting a positive recovery in the energy sector.

This jump in sales is expected to boost government revenues, thanks to higher collections from the Petroleum Development Levy (PDL). The increased legitimate sales come after stricter measures were taken to combat fuel smuggling, particularly from Iran.

Smuggled fuel, which historically made up 15-20 per cent of the local market in areas like Sindh, Balochistan, and southern Punjab, has long been an issue, as it bypasses PDL and isn’t counted in GDP figures.

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