KARACHI: Pakistan’s oil marketing companies (Oil Marketing Companies) recorded a sharp decline in petroleum product sales during May 2026, as historically high fuel prices continued to weigh on demand, according to a report by Topline Research.
Total industry sales fell 23 percent year-on-year and 14 percent month-on-month, reaching 1.17 million tonnes in May 2026 compared to the same period last year.
Despite the monthly decline, cumulative sales during the first eleven months of FY2026 showed a marginal increase of 1 percent year-on-year, rising to 14.9 million tonnes from 14.8 million tonnes in FY2025.
Excluding furnace oil, sales stood at 1.14 million tonnes, down 21 percent year-on-year and 7 percent month-on-month, though still up 2 percent over 11MFY26.
The report attributed the slowdown primarily to a sharp rise in fuel prices. Average petrol (MS) prices increased by 59 percent year-on-year to Rs402 per litre in May 2026, compared to Rs253 per litre in the same month last year. High-speed diesel (HSD) prices also surged 57 percent year-on-year to Rs401 per litre.
Product-wise performance
Petrol sales declined 12 percent year-on-year to 617,000 tonnes, remaining flat compared to April. Diesel sales fell more sharply, down 32 percent year-on-year and 17 percent month-on-month to 455,000 tonnes.
Furnace oil recorded the steepest fall, plunging 64 percent year-on-year and 79 percent month-on-month to just 29,000 tonnes, reflecting normalization after unusually high usage in April.
Company-wise performance
Among major players, Attock Petroleum Limited reported sales of 97,000 tonnes, down 30 percent year-on-year and 19 percent month-on-month.
Pakistan State Oil posted sales of 518,000 tonnes, declining 19 percent year-on-year and 12 percent month-on-month. However, PSO increased its market share by 67 basis points to 44.15 percent during the month.
Hascol Petroleum Limited recorded sales of 34,000 tonnes, down 37 percent year-on-year and 5 percent month-on-month.
Wafi Energy was the only major player to show month-on-month growth, with sales rising 3 percent to 103,000 tonnes, although volumes remained lower compared to last year.
Levy collection remains strong
The report also noted progress in petroleum revenue collection, with the government targeting Rs1.47 trillion under the Petroleum Development Levy (PDL) for FY2026. Around 91 percent of the target—approximately Rs1.33 trillion—has already been collected in the first eleven months of the fiscal year.
Analysts expect fuel demand to remain sensitive to future price adjustments, economic activity, and transport sector trends, while government revenue from petroleum levies is likely to stay strong if current pricing levels persist.
Story by Muhammad Saqib
