Pakistan’s oil sales fall 23% YoY in May as petrol, diesel prices curb demand

Pakistan’s oil marketing companies recorded petroleum product sales of 1.17 million tonnes in May 2026, down 23% year-on-year and 14% month-on-month, as higher petrol and diesel prices reduced consumption, according to Topline Research.

Despite the May decline, cumulative OMC sales during the first eleven months of FY2026 rose 1% year-on-year to 14.9 million tonnes, compared with 14.8 million tonnes in the same period of FY2025.

Sales excluding furnace oil stood at 1.14 million tonnes in May, reflecting a decline of 21% year-on-year and 7% month-on-month.

During 11MFY26, ex-furnace oil sales reached 14.4 million tonnes, up 2% from the same period last year.

The brokerage attributed the fall in demand to higher fuel prices as average motor spirit prices rose 59% year-on-year to Rs402 per litre in May 2026, compared with around Rs253 per litre in the same month last year.

High-speed diesel prices also increased 57% year-on-year to an average of Rs401 per litre.

Product-wise data showed petrol sales fell 12% year-on-year to 617,000 tonnes in May, while remaining largely unchanged from April.

Diesel sales declined 32% year-on-year and 17% month-on-month to 455,000 tonnes.

Furnace oil sales recorded the steepest fall, dropping 64% year-on-year and 79% month-on-month to 29,000 tonnes.

The decline in furnace oil sales likely reflected normalisation in demand after unusually high consumption in April 2026.

Among listed companies, Pakistan State Oil (PSO) posted sales of 518,000 tonnes in May, down 19% year-on-year and 12% month-on-month.

Despite lower volumes, PSO’s market share increased by 67 basis points to 44.15%.

Attock Petroleum Limited (APL) reported sales of 97,000 tonnes, down 30% year-on-year and 19% month-on-month.

Wafi Energy was the only major company to record month-on-month growth, with sales rising 3% to 103,000 tonnes. Its volumes, however, were still 16% lower than May 2025.

Hascol Petroleum reported sales of 34,000 tonnes, down 37% year-on-year and 5% month-on-month.

The federal government collected around Rs1.33 trillion in Petroleum Development Levy during 11MFY26. This is about 91% of the Rs1.47 trillion PDL collection target set for FY2026.

Analysts said petroleum demand may remain sensitive to future fuel price changes, economic activity and transportation sector consumption trends.

They said petroleum levy collection is expected to remain strong if current pricing levels continue.