Karachi: Oil marketing companies (OMCs) in Pakistan reported a slight increase in volumes for December 2024, with sales reaching 1.28 million tons, marking a 3% year-on-year growth. The cumulative volume for the first half of the fiscal year 2025 was recorded at 8.0 million tons, a 4% increase compared to the same period last year.

According to AKD Securities Limited, the growth in OMC volumes is attributed to a recovery in economic activity and stable gasoline prices, which were 10% and 5% lower than the fiscal year 2024 and calendar year 2024 averages, respectively. This stability in prices is driven by a decrease in global crude prices and a steady domestic exchange rate, both of which have bolstered demand.

Within the sector, Shell Pakistan Limited (SHEL) showed a notable performance among the top five players, with a 5% year-on-year increase in sales during December 2024, surpassing the industry's overall growth rate of 3% for the same period. AKD Securities Limited has issued a 'BUY' recommendation for Pakistan State Oil (PSO) and Attock Petroleum Limited (APL), with target prices of PKR 729 and PKR 825 per share by December 2025, and anticipated dividend yields of 5.3% and 6.3% for the fiscal year 2025, respectively.