OMC sales fall 19% MoM in December

Sales, however, climb 4% in 1HFY25 owing to crackdown on smuggled fuel

Listen to article

KARACHI:

During December 2024, the oil marketing companies (OMC) industry reported sales of 1.28 million tons, reflecting a 3% year-on-year (YoY) increase. However, sales registered a notable 19% decline compared to the previous month.

"The month-on-month decline highlights seasonal variation," said Optimus Capital Management Research Head Maaz Azam.

In the first half of fiscal year 2024-25 (1HFY25), total OMC sales reached 8.03 million tons, marking a 4% YoY growth. This indicates a recovery, driven by a stringent crackdown on smuggled Iranian fuel and significant price reductions for petrol and diesel. Owing to the crackdown, petroleum sales surged to a 25-month high in November 2024, reaching 1.58 million tons.

On an annual basis, petroleum sales for calendar year 2024 (CY24) stood at 15.62 million tons, registering a modest 2% YoY growth. This reflects gradual expansion despite challenges such as fluctuating oil prices, policy changes, and macroeconomic uncertainties.

A closer look at fuel-wise performance reveals mixed trends. Motor spirit (MS), commonly known as petrol, sales for December 2024 stood at 0.57 million tons, down by 15% MoM but almost flat YoY with a marginal 1% dip. However, for 1HFY25, MS sales increased by 5% YoY to 3.75 million tons.

High-speed diesel (HSD) showed a robust growth with a 12% YoY increase in December to 0.57 million tons, although it recorded a significant 27% MoM drop. For the half year, HSD volumes climbed by 10% YoY to 3.46 million tons.

In contrast, furnace oil sales continued to decline, with December volumes dropping by 48% YoY and 12% MoM to 0.04 million tons. For 1HFY25, furnace oil sales plummeted by 38% YoY, reflecting a shift away from this fuel. Company-wise, Pakistan State Oil (PSO) reported December sales of 0.57 million tons, down 28% MoM but up 4% YoY, while its 1HFY25 sales fell by 4% YoY to 3.69 million tons.

Attock Petroleum Limited (APL) witnessed a 14% decline in December sales both YoY and MoM, with total 1HFY25 sales dropping 11% YoY to 0.69 million tons.