Pakistan’s petroleum sales jump 23% YoY in July amid cheaper fuel & agri boom
- FO sales surged 406% YoY to 0.08 million tons in July
Pakistan’s petroleum product sales rose sharply in July 2026, with total volumes increasing 23% year-on-year (YoY) to 1.51 million tons, driven by multiple factors, including lower fuel prices and a gradual economic recovery, according to a report by Arif Habib Limited (AHL) released on Monday.
“The YoY surge was primarily driven by lower fuel prices, improved farm economics, stronger agricultural activity, and a gradual recovery in economic and auto sector demand,” the brokerage said.
Excluding furnace oil (FO), oil marketing companies’ (OMCs) sales climbed 18.5% YoY, marking the strongest July performance since July 2021.
High-speed diesel (HSD) volumes increased 19% YoY to 0.62 million tons, while motor spirit (MS), commonly known as petrol, rose 23% YoY to 0.73 million tons.
Meanwhile, FO sales surged 406% YoY to 0.08 million tons, which AHL attributed “primarily to higher furnace oil consumption for power generation”.
On a month-on-month (MoM) basis, total petroleum sales increased 20%, “supported by lower domestic petroleum prices following the decline in global oil prices amid easing geopolitical tensions”.
MS sales rose 12% MoM, while HSD volumes climbed 25%. FO sales also increased 89% over the previous month, “which we attribute to higher seasonal demand for power generation during the summer months,” said AHL.
Among oil marketing companies, Pakistan State Oil (PSO) outperformed the sector, with total sales rising 38% YoY to 702,000 tons, led by a 44.1% increase in MS sales and a 40.3% rise in HSD offtake.
AHL said PSO captured market share from Gas & Oil Pakistan (GO), whose MS market share fell to 5%, the lowest since June 2024, while its HSD market share declined to 7%, the lowest since May 2024.
Separately, AHL estimated the government collected around Rs134 billion in Petroleum Development Levy (PDL) during July, keeping collections broadly on track to achieve the FY27 target of Rs1.68 trillion, which is 11.9% higher than the revised FY26 target.
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