Pakistan’s oil consumption rises 3% in December 2024
In a positive sign for Pakistan’s economy, oil consumption increased by 3% year-on-year in December 2024, according to a recent report by Topline Securities. This uptick in petroleum product sales suggests a gradual economic recovery and improved consumer spending power in the country.
The report reveals that Pakistan’s oil marketing companies (OMCs) recorded sales of 1.28 million tons in December 2024, representing a 3% increase compared to the same month in 2023. This growth is attributed to several factors, including lower petroleum product prices, macroeconomic stabilization, and a decline in smuggling activities.
When excluding furnace oil (FO), the increase in sales becomes even more pronounced. Ex-FO sales in December 2024 reached 1.2 million tons, reflecting a robust 7% year-on-year rise. This indicates that the growth is primarily driven by consumer-oriented fuels rather than industrial usage.
One of the most encouraging signs in the report is the performance of Motor Spirit (MS), commonly known as petrol. While the report shows a slight 1% year-on-year decline in December 2024, the overall trend for the first half of the fiscal year 2025 (1HFY25) is positive. Petrol sales for the first half of the fiscal year ending June 30, 2025 totaled 3.75 million tons, marking a 5% increase compared to the same period last year.
This growth in petrol consumption is particularly significant as it primarily reflects usage in domestic vehicles. The increase suggests a recovery in consumer spending power and confidence, as more Pakistanis are likely using their personal vehicles for transportation and leisure activities.
