ISLAMABAD: The recent exit of two major global energy companies—Shell Petroleum Limited (SPL) and TotalEnergies—from Pakistan’s fuel retail market has sparked mixed reactions among industry stakeholders and analysts.
Experts argue that Pakistan’s downstream market is not contracting; rather, ownership is shifting to new international players. In June 2023, Shell announced the sale of its 77% stake in Shell Pakistan Limited, which was subsequently acquired by Saudi-based Wafi Energy LLC. Similarly, in August 2024, TotalEnergies divested its 50% share in Total PARCO Pakistan Limited (TPPL), transferring ownership to global commodities trader Gunvor Group.
Shell’s departure followed a difficult financial period for SPL, which recorded substantial losses in 2022 due to exchange rate volatility, rupee devaluation, overdue receivables, and challenges in profit repatriation.
A former Secretary Petroleum, requesting anonymity, noted that these developments reflect global restructuring trends rather than a withdrawal from Pakistan alone. He emphasised that Shell has been exiting several global markets as part of its strategic shift toward green energy, while its Pakistan operations continue under Wafi Energy’s expansion plan.
A Topline Securities researcher echoed similar views, stating that Total PARCO’s footprint remains intact under Gunvor Group, which is maintaining and expanding its retail network in Pakistan.
A former Chairman of the Pakistan Petroleum Dealers Association (PPDA) said the changes reflect a combination of global strategic adjustments and Pakistan’s own challenging economic and investment environment.
Overall, analysts believe the market is undergoing a transition—not a decline—as new international investors step in to reshape the country’s fuel retail landscape.
Story by Wasim Iqbal
