KARACHI: Pakistan’s petroleum product sales declined 3% year-on-year (YoY) to 1.26 million tonnes in August 2026, mainly due to a sharp increase in motor gasoline (MS) and high-speed diesel (HSD) prices, according to industry data.
On a month-on-month (MoM) basis, overall sales by oil marketing companies (OMCs) fell 16% during the month. Excluding furnace oil (FO), OMC sales declined 9.3% YoY and 19% MoM.
The decline came amid a significant rise in fuel prices. MS prices increased by Rs70.06 per litre YoY and Rs10.01 MoM, while HSD prices rose Rs99.73 per litre YoY and Rs11.61 MoM.
MS sales fell 9% MoM to 0.67 million tonnes in August, while HSD offtake dropped sharply by 32% to 0.42 million tonnes. On a YoY basis, HSD sales declined 19%, while MS volumes were down 1%.
Furnace Oil Sales Surge
In contrast, furnace oil sales posted a significant increase, rising 26% MoM and 429% YoY to around 0.17 million tonnes.
The surge was attributed to higher electricity demand and increased reliance on furnace-oil-based power generation amid disruptions in RLNG supplies.
Despite the August decline, cumulative petroleum product sales increased 10% YoY to 2.77 million tonnes during the first two months of FY27, compared with 2.52 million tonnes in the corresponding period of the previous year.
During July-August FY27, MS sales stood at 1.39 million tonnes, while HSD volumes reached 1.05 million tonnes. Furnace oil sales also increased to around 0.18 million tonnes during the period.
PDL Collection Target Set at Rs1.68tr
Meanwhile, the government has set a Petroleum Development Levy (PDL) collection target of Rs1.68 trillion for FY27, representing an 11.9% increase over the revised FY26 target of Rs1.5 trillion and 14.2% above the original FY26 budget target of Rs1.47 trillion.
Based on estimates, the government collected approximately Rs245 billion in PDL during the first two months of FY27.
APL Gains Market Share
Among major oil marketing companies, Attock Petroleum Limited (APL) recorded an 8% YoY increase in petroleum product sales during August.
APL sold approximately 121,000 tonnes, up 8% from August last year, although volumes declined 5% compared with July. Its market share increased by 119 basis points to 9.61% during the month.
Pakistan State Oil (PSO), the country’s largest OMC, recorded sales of around 570,000 tonnes, up 4% YoY but down a significant 19% MoM. Its market share declined by 131 basis points to 45.21%.
The decline in PSO’s market share was primarily linked to a sharp reduction in furnace oil sales, with the company selling only around 23 tonnes of furnace oil in August.
Story by Tanveer Malik
