Pakistan’s petroleum product sales surged by 15% in November FY25, reaching 1.58 million tonnes, the highest in 25 months. This marks a significant jump compared to the 1.37 million tonnes sold in November 2023.
Petrol sales saw a strong increase of 17%, while high-speed diesel (HSD) sales rose by 21%. The rise was attributed to robust local demand and stricter measures against smuggled petroleum products. However, sales of furnace oil (FO) dropped sharply by 55%, as its use in power generation continues to decline.
On a year-on-year basis, Pakistan State Oil (PSO), the largest market player, recorded a 12% growth in total sales, mainly due to increases in petrol (MS) and HSD sales. However, PSO’s furnace oil sales plummeted significantly.
Despite the growth in sales, PSO’s market share decreased as competitors like Shell and HASCOL gained ground. Shell and HASCOL benefited from expanding their market reach and meeting rising demand effectively.
The strong demand for petrol and diesel highlights positive economic activity and stricter control over smuggling, but the decline in furnace oil usage reflects a shift in the country’s energy mix.
The overall increase in petroleum sales indicates improving market dynamics, but the changing landscape suggests a need for diversification and innovation within the sector to sustain growth.
