KARACHI: Pakistan’s oil sales declined sharply in April 2026 as rising petroleum prices dampened demand, according to data released by industry analysts.
Oil Marketing Companies (OMCs) recorded total sales of 1.36 million tons during the month, reflecting a 7% year-on-year (YoY) and 6% month-on-month (MoM) decrease, as per insights from Topline Securities Limited.
Analysts attributed the downturn to a surge in petrol and diesel prices, driven by geopolitical tensions in the Middle East, particularly the impact of the US-Iran conflict.
Cumulative Sales Show Modest Growth
Despite the monthly decline, total oil sales for the first ten months of fiscal year 2025-26 (10MFY26) stood at 13.8 million tons, marking a 4% YoY increase compared to 13.2 million tons in the same period last year.
Excluding Furnace Oil (FO), April 2026 sales were 1.22 million tons, down 11% YoY and 10% MoM. However, cumulative ex-FO sales for 10MFY26 rose 5% YoY to 13.2 million tons.
Sharp Rise in Fuel Prices
Fuel prices witnessed a significant increase during April:
• Motor Spirit (MS): Averaged Rs374.73/litre, up 21% MoM from Rs310.53
• High-Speed Diesel (HSD): Averaged Rs409.61/litre, up 26% MoM from Rs325.21
The surge in prices kept demand subdued, in line with market expectations, analysts noted.
Product-wise Performance
• Motor Spirit (MS): Sales dropped 7% YoY and 8% MoM to 615,000 tons
• High-Speed Diesel (HSD): Declined 12% YoY and 7% MoM to 550,000 tons
• Furnace Oil (FO): Jumped 63% YoY and 56% MoM to 137,000 tons, likely due to increased reliance as an alternative fuel
Company-wise Breakdown
Among major listed OMCs:
• Attock Petroleum Limited (APL) recorded 119,000 tons, down 6% YoY but up 5% MoM, making it the only company to post monthly growth
• Pakistan State Oil (PSO) saw sales decline 5% YoY and 6% MoM, though its market share rose 7 basis points to 43.48%
• Wafi Energy Pakistan posted 100,000 tons, flat YoY and down 3% MoM
• Hascol Petroleum Limited reported 35,000 tons, plunging 26% YoY and 21% MoM
Petroleum Levy Collection
The government has set a Petroleum Development Levy (PDL) target of Rs1.47 trillion for FY2026. Analysts estimate that around Rs1.21 trillion (82%) has already been collected during the first ten months of the fiscal year.
Outlook
Market experts believe that oil demand may remain under pressure in the coming months if petroleum prices stay elevated. However, any stabilization in global oil markets could help support recovery in domestic consumption.