Higher petrol and diesel prices weigh on demand, while furnace oil sales surge amid LNG shortages and loadshedding
KARACHI: Sales of petroleum products by Pakistan’s oil marketing companies (OMCs) fell 16 per cent month on month (MoM) in August 2026, as sharply higher fuel prices weighed on demand.
According to Topline Securities Limited, OMC sales stood at 1.3 million tonnes during August, down 3 per cent year on year (YoY) and 16 per cent MoM.
Despite the monthly decline, cumulative sales during the first two months of fiscal year 2026-27 (2MFY27) reached 2.8 million tonnes, representing a 10 per cent increase compared with the same period last year.
Higher fuel prices weigh on demand
Topline Securities attributed the decline primarily to a sharp increase in fuel prices during August.
The average price of Motor Spirit (MS), commonly known as petrol, increased 26 per cent YoY and 6 per cent MoM to around Rs334 per litre.
Meanwhile, High-Speed Diesel (HSD) prices averaged around Rs379 per litre, representing a 36 per cent YoY and 11 per cent MoM increase.
Excluding Furnace Oil (FO), OMC sales fell to 1.2 million tonnes, down 9 per cent YoY and 23 per cent MoM. Ex-FO sales during 2MFY27 nevertheless increased 7 per cent YoY to 2.7 million tonnes.
Petrol and diesel sales decline
Petrol sales stood at 666,000 tonnes in August, declining 1 per cent YoY and 9 per cent MoM.
Diesel sales recorded a sharper contraction, falling 19 per cent YoY and 32 per cent MoM to 422,000 tonnes.
In contrast, Furnace Oil recorded five-fold YoY growth and increased 26 per cent MoM during the month.
The rise in FO demand was attributed to LNG shortages and increased loadshedding in Punjab, which could encourage power plants to switch to furnace oil. This may support domestic FO sales at the expense of exports.
PSO remains largest OMC
Among listed companies, Attock Petroleum Limited (APL) recorded sales of 121,000 tonnes in August, up 8 per cent YoY but down 5 per cent MoM.
APL’s market share increased by 119 basis points to 9.61 per cent.
Pakistan State Oil (PSO) remained the largest player, with sales rising 4 per cent YoY but falling 19 per cent MoM to 570,000 tonnes.
PSO’s market share declined by 131 basis points to 45.21 per cent, mainly because of a significant reduction in its furnace oil market share. The company sold only 23 tonnes of FO during August.
Wafi and Hascol sales
Wafi Energy (WAFI) recorded sales of 107,000 tonnes, up 1 per cent YoY but down 18 per cent MoM.
HASCOL sales stood at 35,000 tonnes, declining 16 per cent both YoY and MoM. It was the only company among the listed OMCs to record a year-on-year decline in sales during the month.
Despite the August slowdown, Topline Securities expects OMC sales to grow by around 8-10 per cent during FY2026-27, supported by an overall improvement in petroleum product demand.
The outlook, however, remains sensitive to fuel prices, power-sector demand, LNG availability and broader economic activity, which are likely to influence petroleum consumption during the financial year.