ISLAMABAD: Recent exit by two major international energy players, Shell Petroleum Limited (SPL) and TotalEnergies, from Pakistan’s retail market have sparked diverse opinion within the industry and amongst sector experts.
The experts maintain that energy retail in Pakistan is not shrinking. It has simply shifted ownership to new international investors.
In June 2023, Shell announced its intent to sell its 77 percent shareholding in Shell Pakistan (SPL) - a stake subsequently acquired by the Saudi firm, Wafi Energy LLC.
Wafi Energy Pakistan explores opportunities in oil marketing sector
In August 2024, TotalEnergies sold its 50 percent stake in Total PARCO Pakistan Limited (TPPL) to the global commodities trader, Gunvor Group.
Shell’s decision to exit followed a challenging period for its local entity, Shell Pakistan (SPL), which reported significant losses in 2022. These losses were attributed to a combination of factors, including fluctuation in the exchange rate, devaluation of the Pakistani rupee, overdue receivables and difficulties in repatriating profits.
A former Secretary Petroleum on condition of anonymity maintained that these cases reflect either global restructuring decisions or ownership transfers.
He said Shell did not just leave Pakistan – it exited multiple markets worldwide as part of its shift from petroleum to green energy. Its Pakistan business was acquired by Wafi Energy (Saudi Arabia), which is expanding operations, he added.
A researcher in Topline Securities said that Total PARCO did not disappear. It was taken over by Gunvor Group (Switzerland), a global energy giant that continues to run and expand retail operations in Pakistan.
A former Chairman Pakistan Petroleum Dealers Association (PPDA) said it is a mix of evolving strategies at a global or regional level for the respective entity, as well as unfavourable economic and investment environment locally.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.