Pakistan’s oil marketing companies (OMCs) witnessed a mixed performance in January 2025, with overall petroleum sales remaining stable on a year-on-year basis at 1.38 million tons but showing a strong month-on-month increase of 8 percent. The positive month-on-month growth can be attributed to a resurgence in economic activity following the winter holidays, improved industrial demand, and a reduction in smuggled fuel from neighboring regions.
The cumulative petroleum sales for the first seven months of FY25 (7MFY25) stood at 9.41 million tons, reflecting a 4 percent year-on-year increase. This growth was primarily driven by higher demand for high-speed diesel (HSD), which benefited from stricter enforcement against smuggled fuel and rising industrial activity.
However, furnace oil (FO) sales continued their declining trend due to the shift towards cheaper and more efficient energy alternatives
Overall industry sales in January 2025 remained stable at 1.38 million tons, the same as in January 2024. High-speed diesel (HSD) sales surged 17 percent year-on-year driven by strong industrial and agricultural demand, particularly from the transport and logistics sectors. Meanwhile, motor spirit (MS) sales showed modest growth, rising 1 percent year-on-year, reflecting steady private vehicle usage. In contrast, furnace oil (FO) sales plummeted 68 percent to 58,000 tons as power generation continued shifting toward alternative energy sources. On a month-on-month basis, petroleum sales saw notable growth, with MS increasing by 10 percent, HSD by 5 percent, and FO by 40 percent, largely due to seasonal factors and changing fuel consumption patterns.
For 7MFY25, total petroleum sales reached 9.41 million tons, reflecting a 4 percent year-on-year increase. High-speed diesel (HSD) emerged as the strongest performer, growing 11 percent year-on-year driven by increased industrial and transportation demand. Motor spirit (MS) sales also showed steady growth, rising 5 percent year-on-year indicating consistent private vehicle consumption. In contrast, furnace oil (FO) sales continued their downward trajectory, dropping 46 percent year-on-year, highlighting an ongoing structural shift away from furnace oil in power generation as industries and power producers transition to alternative energy sources.
Moving forward, economic recovery, fuel price adjustments, and regulatory shifts will shape market trends. While HSD and MS sales are expected to remain steady, the industry will continue adapting to energy diversification and evolving policy frameworks.
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