KARACHI: Pakistan’s petroleum sales remained under pressure in June 2026, with total sales by oil marketing companies (OMCs) falling 20% year-on-year (YoY) to 1.26 million tonnes, reflecting subdued demand amid elevated domestic fuel prices and increased cross-border fuel smuggling.
According to industry data, petroleum sales, however, showed signs of recovery on a month-on-month (MoM) basis, rising 7% as lower domestic fuel prices—following a decline in international crude oil prices and easing geopolitical tensions—supported consumption.
Excluding furnace oil (FO), total OMC sales declined 15% YoY but increased 6% MoM. The annual decline was primarily driven by weaker demand for motor spirit (MS) and high-speed diesel (HSD), with diesel recording the sharpest contraction. Analysts attributed the slowdown to higher retail fuel prices, which also encouraged a resurgence in cross-border smuggling, particularly of diesel.
HSD sales fell 20% YoY to 0.50 million tonnes, while MS sales declined 11% to 0.65 million tonnes due to weak consumer demand and elevated fuel prices.
Furnace oil recorded the steepest annual decline, with sales plunging 68% YoY, largely because of increased hydropower generation, which reduced reliance on furnace oil for electricity production.
For the full FY2025-26, cumulative OMC sales stood at 16.2 million tonnes, broadly unchanged from the previous fiscal year. Analysts noted that relatively stable demand during most of the year was offset by weaker fuel consumption in the final quarter following the outbreak of the US-Iran conflict.
On a monthly basis, petroleum consumption improved across major products. MS sales increased 5% MoM, HSD sales rose 9%, while FO sales rebounded 41%, supported by higher electricity demand during the summer season that boosted fuel requirements for power generation.
Among individual companies, Attock Petroleum Limited (APL) recorded sales of 104,000 tonnes in June, down 21% YoY but up 7% MoM. The company’s market share for FY26 declined by 53 basis points to 8.22%.
Pakistan State Oil (PSO), the country’s largest oil marketing company, posted sales of 527,000 tonnes, representing a 20% YoY decline, although volumes increased 2% from the previous month. PSO’s market share for June slipped by 226 basis points to 41.9%, while its cumulative FY26 market share declined to 42.44%.
Wafi Energy reported sales of 117,000 tonnes, down 8% YoY but up 13% MoM, while Hascol Petroleum recorded sales of 44,000 tonnes, remaining broadly flat compared with June last year and registering a strong 29% monthly increase.
Despite weaker fuel demand, the federal government exceeded its Petroleum Development Levy (PDL) collection target for FY2025-26. Against the budgeted target of Rs1.47 trillion, PDL collections are estimated to have reached approximately Rs1.51 trillion, surpassing the annual revenue target.
