Pakistan’s oil marketing companies (OMCs) reported a mixed performance in July 2025, with overall sales showing an 8% year-on-year (YoY) increase, but a significant 16% month-on-month (MoM) decline, according to recent data shared by Topline Pakistan Research.
Total sales for July 2025 stood at 1.22 million tons, representing a 2% increase compared to the same month last year. However, the figure marked a 22% MoM decline, which can be attributed to several factors.
Excluding Furnace Oil (FO), the sales dropped by 16% MoM but increased by 8% YoY, standing at 1.21 million tons.
The year-on-year growth is largely attributed to a gradual economic recovery and a reduction in the smuggling of oil from Iran.
However, the sharp month-on-month drop was due to a combination of higher petrol and diesel prices, seasonal fluctuations due to floods and rains in the northern region, and pre-buying activity in June 2025, in anticipation of potential price increases linked to a carbon/climate support levy.
Motor Spirit (MS) sales rose 4% YoY but fell 16% MoM, reaching 613,000 tons in July 2025. Similarly, High-Speed Diesel (HSD) sales saw a 9% YoY rise but fell 18% MoM to 509,000 tons. The MoM decline in HSD is attributed to lower seasonal demand following the conclusion of the harvest season and the recent price hike.
Furnace Oil (FO) sales experienced a sharp drop of 80% YoY and 88% MoM, amounting to only 15,000 tons. The decline is linked to the imposition of the Petroleum Development Levy (PDL) on FO in the recent budget and pre-buying in June.
In terms of company performance, Attock Petroleum (APL) saw sales of 99,000 tons, a 3% YoY decline (excluding FO, up 2%) and a 25% MoM decrease. Pakistan State Oil (PSO) recorded sales of 508,000 tons, reflecting a 7% YoY decline (excluding FO, down 1%) and a 23% MoM decrease. PSO’s market share in HSD and MS both saw significant drops, with a total market share decrease from 42.2% in June to 41.6% in July.
Meanwhile, Wafi Energy Pakistan Limited (WAFI) saw a 22% YoY increase in sales, reaching 106,000 tons, though it faced a 17% MoM decline. Hascol Petroleum’s sales reached 45,000 tons, a 16% YoY increase and 3% MoM growth.
Looking ahead, analysts expect a growth in oil sales in fiscal year 2026, with an anticipated range of 7-10%.
