AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: In a notable development for the oil market, the Oil Marketing Companies (OMCs) have reported a significant increase in sales, with volumes reaching 1.5 million tons in April 2025, marking a 32% year-on-year and 20% month-on-month increase. This surge has been accompanied by a government decision to remove the cap on the Petroleum Development Levy (PDL), enabling it to adjust the levy in line with fiscal targets.
OMC sales have shown a cumulative growth of 6% year-on-year over the first ten months of the fiscal year 2025. Breaking down the figures, Motor Spirit (MS) saw a 24% increase, Hi-Speed Diesel (HSD) rose by 33%, and Furnace Oil (FO) sales surged by 180% compared to the same period last year.
In April 2025, a presidential ordinance lifted the Rs70 per litre cap on PDL, allowing the government to raise the levy according to its budgetary needs. This move means that despite a decrease in global oil prices, the benefits have not been passed on to consumers, as the levy on MS and HSD has been increased.
According to projections, to achieve the PDL collection targets set in the FY25 budget, MS and HSD volumes must grow by 40% year-on-year in the remaining two months of the fiscal year. The projections assume that the PDL rates will remain at Rs78 per litre for MS and Rs77 per litre for HSD.