Karachi June 4 2024: Sales of petroleum products increased by 7 percent during May 2024 when compared to same month last year to highest level in nine months due to cut in prices of petrol and diesel, according to data shared by OCAC.
During the month, in top three Attock Petroleum (APL) experienced the highest recovery, showing a 14 percent increase, followed by a 13 percent improvement in sales of Shell Pakistan (Shell) and a 11 percent growth in the volumes of Pakistan State Oil (PSO).
In May 2024, the government decreased petroleum product prices to pass on the impact of the decreasing international market prices for petroleum products. The average prices of Motor Spirit saw a decrease of 4.2 percent, while High-Speed Diesel prices drop by 3.2 percent in May 2024 compared to the previous month.
Sales of Motor Spirit (MS) for May 2024 increased by 1 percent compared to the same month last year, reaching 0.61 million tons, driven by drop in prices. A similar trend was observed in the sales of High-Speed Diesel (HSD), which rose by 18 percent month-on-month to 0.55 million tons in May 2024, primarily due to higher demand from the agriculture sector and decline in prices.
However, sales of Furnace oil (FO) experienced a significant decline of 24 percent in May 2024 compared to May 2023 sales, dropping to 0.91 million tons. This decline was attributed to reduced demand from power producers.
During 11MFY24, overall petroleum sales decreased by 9 percent year on year to 13.8 million tons compared to 15.3 million tons during the same period last year. Sales of Motor Spirit and High Speed Diesel declined by 5 percent and 2 percent to 6.4 million tons and 5.7 million tons compared to sales of 6.8 million tons and 5.8 million tons in the same period last year.
