OMC sales fall 19% MoM in December

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.