Boom in Sales of Pakistan's Oil Marketing Companies (OMCs) in April 2025
YoY and MoM Skyrocket with 32% and 20% Increases, respectively
Increase in petroleum sales by 32% annually in Pakistan due to escalating demand
In April 2025, Pakistan's Oil Marketing Companies (OMCs) celebrated a whopping 32% year-on-year (YoY) boost and a 20% month-on-month (MoM) surge compared to March 2025[1][3]. This delightful sales spike saw a monumental 1.46 million tons in April, a significant jump from the 1.22 million tons recorded in March[1].
Product-Wise Sales Breakdown
- Motor Spirit (MS): MS sales jumped 24% YoY and 14% MoM, reaching a staggering 660,000 tons[1].
- High-Speed Diesel (HSD): HSD sales roared 33% YoY and 28% MoM, swelling to a colossal 620,000 tons[1].
- Furnace Oil (FO): FO sales experienced an electrifying 182% YoY and 55% MoM growth, touching a whopping 80,000 tons[1].
Unveiling the catalysts
- The Economic Boom: The resurgence in sales can be traced back to the resilience of Pakistan's economic activities, invigorating sectors such as industry, transportation, and commerce[1]. This momentous comeback has caused increased demand for petroleum products.
- Market Titans: Among OMCs, Pakistan State Oil (PSO) ruled the roost with 620,000 tons in April, exhibiting a 12% YoY and 22% MoM increase[1]. Other notable heavyweights included Attock Petroleum (APL) with a 28% YoY surge and Wafi Energy with a 23% YoY increase[1].
- Dealer Profit Margins: Despite sustained demands for increased dealer profit margers, which have been on the backburner since July 2023, the sales growth demonstrates that current operations can sustain high volumes[2]. However, these unresolved margin issues could impinge upon future profitability and operational efficiencies.
Summing it all up
The meteoric rise in OMC sales underscores a broader economic rebound in Pakistan. Critical factors driving this include the recovery of economic activities, surging demand for petroleum products, and the dominance of oil marketing giants like PSO. Nevertheless, ongoing issues such as dealer profit margins may cloud the future sustainability of this growth.
- The sales of diesel in Pakistan's Oil Marketing Companies (OMCs) saw a significant increase in April 2025, reaching 620,000 tons, marking a 33% year-on-year (YoY) surge and a 28% month-on-month (MoM) growth.
- In the financial aspects of business, the escalating sales of oil products by OMCs in 2025 seems to be largely influenced by the economic boom, particularly in sectors like industry, transportation, and commerce.
- Looking ahead to 2025, despite the impressive sales growth, concerns regarding dealer profit margins put forth since July 2023 may cast doubt on the long-term sustainability of this boom in sales for the oil marketing business.
