Pakistan’s oil marketing companies (OMCs) recorded petroleum product sales of around 1.35 million tonnes in September 2026, down 2% year-on-year (YoY) but up 7% month-on-month (MoM), with a sharp increase in furnace oil sales partially offsetting weaker petrol and high-speed diesel demand.
September sales compared with approximately 1.37 million tonnes in September 2025 and around 1.26 million tonnes in August 2026, indicating that the sector recovered on a monthly basis but remained under pressure compared with the same month last year.
The September performance took cumulative OMC sales during the first quarter of FY2026-27 to approximately 4.1 million tonnes, representing 6% YoY growth. However, the headline increase was largely driven by furnace oil, while sales of mainstream petroleum products remained under pressure.
Excluding furnace oil, OMC sales were approximately 1.25 million tonnes in September, down nearly 8% YoY, although volumes increased around 8% MoM.
For 1QFY27, sales excluding furnace oil remained broadly unchanged at around 3.8 million tonnes, highlighting the difference between headline sector growth and underlying demand for petrol and diesel.
Furnace oil emerges as major growth driver
Furnace oil emerged as the strongest contributor to the September increase. Sales surged to approximately 93,000 tonnes, compared with only around 13,000 tonnes in September 2025, representing an increase of about 601% YoY.
The sharp rise was linked to changes in Pakistan’s “power-generation mix” and increased furnace-oil-based generation amid shortages in “LNG supplies”.
Furnace oil sales nevertheless declined around 5% from August, reflecting lower power demand during the month.
Cumulatively, furnace oil sales during 1QFY27 reached approximately 270,000 tonnes, up sharply from the same period last year.
“The figures indicate that the improvement in total OMC volumes is being driven significantly by the power-generation side rather than a broad-based recovery in transport-fuel consumption.”
Petrol demand remains under pressure
Motor spirit, or petrol, sales declined around 5% YoY and 2% MoM to approximately 652,000 tonnes in September.
The decline comes against a sharp increase in retail fuel prices over the past year. Average petrol prices during September were around Rs375 per litre, approximately 42% higher than a year earlier.
Despite the monthly decline, cumulative petrol sales during 1QFY27 reached around 2.05 million tonnes, up approximately 4% YoY.
The figures suggest that while petrol consumption has remained relatively resilient over the first quarter, higher pump prices are putting pressure on monthly demand.
Diesel volumes recover monthly but remain below last year
High-speed diesel (HSD) sales showed a similar pattern, falling 11% YoY but increasing by 25% MoM to approximately 525,000 tonnes in September.
The strong monthly increase was partly associated with seasonal demand, including agricultural activity around the start of the “Rabi season”.
However, HSD consumption remained significantly below last year’s level, while the average diesel price reached approximately Rs401 per litre, around 48% higher YoY.
Cumulative HSD sales during 1QFY27 stood at around 1.57 million tonnes, down approximately 3% YoY.
PSO strengthens market position
Among listed OMCs, Pakistan State Oil (PSO) remained the largest player during September, recording sales of approximately 639,000 tonnes, up 12% YoY and 12% MoM.
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PSO’s market share increased by around 230 basis points to 47.51%, supported particularly by stronger HSD sales. The company sold approximately 269,000 tonnes of HSD in September, compared with around 199,000 tonnes in August.
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Attock Petroleum Limited (APL) recorded sales of approximately 116,000 tonnes, broadly unchanged from September last year but down around 4% MoM. Its market share declined by approximately 99 basis points to 8.62%.
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Wafi Energy Pakistan posted sales of around 110,000 tonnes, down 6% YoY but up 2% MoM, while Hascol Petroleum Limited recorded sales of approximately 37,000 tonnes, down 14% YoY but up 5% MoM.
PSO was the only listed OMC among the major players to record growth on both a YoY and MoM basis during September.
The combined market share of the four listed OMCs increased by approximately 90 basis points to 67% during the month.
First-quarter picture remains mixed
The 1QFY27 numbers present a mixed picture for Pakistan’s petroleum market.
Total OMC sales increased 6% YoY to approximately 4.1 million tonnes, compared with roughly 3.9 million tonnes during the corresponding period of FY26.
However, excluding furnace oil, volumes remained broadly flat at around 3.8 million tonnes.
The divergence is important because petrol and diesel represent the bulk of transport-related fuel consumption, whereas the extraordinary increase in furnace oil reflects developments in the “electricity-generation mix”.
Market researchers have projected OMC sales growth of around 8-10% for FY27, although the outlook remains dependent on fuel prices, economic activity, agricultural demand, power-sector fuel requirements and the availability of “LNG”.
For consumers and transport-dependent businesses, the sharp increase in petrol and diesel prices remains a key constraint. The September data show that monthly demand can recover with seasonal and economic factors, but the year-on-year decline in petrol and diesel volumes indicates that higher fuel costs continue to affect consumption.
“The September figures therefore point to a petroleum market in which headline volumes are growing on a quarterly basis, but the underlying transport-fuel market remains considerably more subdued than the overall numbers suggest.”