Petroleum sales reach 25-month high after price cuts

Petroleum product sales surged by 15 percent to reach a 25-month high of 1.58 million tonnes in November FY25, compared to 1.37 million tonnes in the same month last year.

In November FY25, petrol sales increased by 17% year-on-year (YoY) to 0.67 million tonnes, while high-speed diesel (HSD) sales jumped 21% YoY to 0.79 million tonnes. 

This growth follows a 12% price cut in petrol and a 15% reduction in HSD prices.

In contrast, furnace oil (FO) sales dropped 55% YoY to 0.04 million tonnes due to lower demand for FO-based power generation. 

On a month-on-month (MoM) basis, overall petroleum sales grew by 6%, driven by higher HSD demand during the peak harvesting season and the halt of smuggled fuel supplies.

In the first five months of FY25, total petroleum sales increased by 5% YoY, totaling 6.75 million tonnes. Sales of MS and HSD grew, while FO sales decreased. 

The robust sales helped boost the petroleum development levy (PDL) collection to Rs110 billion in November, marking a 19% YoY increase.

Petroleum sales have been a major driver of economic recovery, with strong growth in the MS and HSD segments. This trend is expected to continue as demand rises and anti-smuggling measures remain in place.