Petroleum product sales drop by 14% in August 2024 amid smuggling concerns

Sales of petroleum products in Pakistan saw a significant decline of 14% in August 2024, totalling 1.22 million tonnes, according to a report by Arif Habib Research.

The decrease is attributed to the influx of smuggled petroleum products from Iran.

Petrol sales in August 2024 fell by 7% to 620,000 tonnes compared to the same month in 2023, though there was a 6% increase from July. Diesel sales experienced a sharper decline of 17%, totalling 460,000 tonnes in August 2024 compared to the previous year, with a 2% drop from July. Furnace oil sales plummeted by 45% to 60,000 tonnes compared to August 2023.

In the first two months of the current financial year, overall petroleum product sales decreased by 12% to 2.41 million tonnes. Petrol sales dropped by 8% to 1.22 million tonnes, diesel by 12% to 920,000 tonnes, and furnace oil by 46% to 140,000 tonnes. The report highlights that the smuggling of Iranian petroleum products has resulted in billions of rupees in lost tax revenue for the national treasury.