Pakistan’s oil marketing companies (OMCs) saw a 6% year-on-year (YoY) increase in total sales in December 2025, reaching approximately 1.4 million tons, despite a 5% month-on-month (MoM) decline, according to data compiled by IMS Research.
The growth was largely driven by a strong 11% YoY increase in Motor Spirit (MS) sales, which totaled about 628,000 tons. However, High-Speed Diesel (HSD) sales fell by 4% YoY, amounting to 573,000 tons, offsetting some of the gains.
On a MoM basis, OMC volumes saw a 5% decline, primarily due to a sharp 19% drop in HSD sales, attributed to a transport sector strike and disruptions in cross-border trade. The overall industry volume for the first half of FY26 reached 8.2 million tons, up 2% from the previous year.
MS sales continued their upward trend, rising 11% YoY and 3% MoM, indicating strong demand despite a 5% YoY increase in retail prices. The growth was supported by improving economic activity and better control over illegal product inflows. Meanwhile, PSO’s MS market share decreased by 2 percentage points (ppt) MoM to 37%, while GO Petroleum’s share increased by 2 ppt to 14%.
HSD sales, on the other hand, experienced a notable drop of 4% YoY and 19% MoM to 553,000 tons, despite the ongoing agricultural season. This decline is mainly attributed to the transport strike and lower Afghan transit flows. PSO’s HSD market share also saw a decline, dropping 8 ppt MoM to 40%, with GO Petroleum gaining a 5 ppt increase to 16%.
Furnace Oil sales saw a significant rise, up 40% YoY and 2.3 times MoM to 58,000 tons, driven by seasonal power generation demand. However, volumes are expected to normalise as hydropower flows improve.
Competition within the OMC sector remains intense, with PSO’s overall market share falling by 5 ppt MoM and APL’s share dropping by 1 ppt to around 8%. GO Petroleum and WAFI Petroleum were the main beneficiaries, with their market shares rising to 14% and 8%, respectively.
OMC volumes were under pressure in December due to the suspension of transit trade with Afghanistan and disruptions caused by the transport sector strike. Looking forward, industry sales are expected to soften as the seasonal boost from the Rabi crop fades, and trade flows with Afghanistan remain limited. However, government measures to curb petroleum smuggling from Iran are expected to support formal-sector volumes. PSO remains the sector’s top pick, with an improving cash-flow profile and a June 2026 target price of PKR570 per share.
