Islamabad September 2 2024: In August 2024, Pakistan’s petroleum product sales experienced a slight recovery, increasing by 2% MoM to reach 1,216K tons, according to data released by OCAC.
This modest rise comes despite challenging economic conditions, including higher prices and an ongoing issue with increased smuggling from Iran, which continues to impact the official sales figures.
Motor Spirit (MS), commonly known as petrol, saw a notable MoM increase of 6%, reaching 625K tons. This uptick indicates a rebound in consumer demand after a period of subdued sales. However, on a YoY basis, MS sales declined by 7%, reflecting the ongoing impact of elevated fuel prices, which have dampened consumption over the past year.
Conversely, High-Speed Diesel (HSD) sales declined by 2% MoM, amounting to 456K tons. The YoY comparison paints a starker picture, with sales plummeting by 17%. The significant YoY drop in HSD demand is largely attributed to the dual pressures of high prices and the growing prevalence of smuggled fuel, particularly from neighboring Iran, which has made it challenging for local sales to maintain their previous levels.
Overall, while the MoM increase in petroleum product sales is a positive sign, the YoY declines underscore the challenges facing the sector, particularly in light of the economic pressures and illicit fuel trade affecting official sales volumes.
PSO sold 528K tons of petroleum products, capturing 43 percent of total industry sales. Total PARCO’s market share for the month was 11 percent, with the company selling 134K tons of petroleum products.
