Transport sector leads demand surge as imports and energy costs climb amid global oil volatility
ISLAMABAD: During July–March FY2026, Pakistan’s total petroleum consumption rose 3.5 percent year-on-year to 13.64 million metric tonnes (MMT), compared to 13.17 million metric tonnes in the same period of FY2025.
The increase reflects sustained energy demand despite high international oil prices and inflationary pressure. Consumption expanded across transport, industrial, and commercial sectors, indicating gradual economic recovery and improved mobility.
Growth in trade activity, logistics operations, and travel demand contributed to higher fuel usage during the period, underscoring stronger domestic energy demand clearly evident reflecting sustained macroeconomic recovery signals in energy demand patterns.
The transport sector remained the largest contributor to petroleum demand, accounting for 82.5 percent of total consumption during the review period. Fuel usage in this segment increased by 6.7 percent, rising from 10.5 MMT in FY2025 to 11.2 MMT in FY2026.
The growth was driven by higher freight movement, expanded logistics activity, and increased passenger travel.
Rising dependence on road-based transport and commercial vehicles further supported consumption gains. Improved economic activity and supply chain recovery also played a key role in boosting fuel demand across the sector particularly in urban centers and industrial freight corridors nationwide.
During the same period, Pakistan’s petroleum imports rose to 13.8 million metric tonnes from 12.5 million metric tonnes in FY2025, up 10.5 percent. The import bill increased to US $8.9 billion from US $8.4 billion, a 6.3 percent rise.
The growth was driven by higher volumes and global oil price volatility, while exchange rate fluctuations and supply pressures further contributed to rising energy costs and increased external sector pressure with implications for external financing requirements.
The rising petroleum consumption trend highlights Pakistan’s growing reliance on imported energy, underscoring the need for long-term policy measures to enhance energy efficiency and diversify the fuel mix.
Continued demand growth may increase pressure on the external account if global oil prices remain unstable.
Experts suggest strengthening public transport, improving fuel efficiency standards, and accelerating adoption of alternative energy sources. Strategic planning in the energy sector will be essential to balance economic growth with import sustainability and reduce vulnerability to international market fluctuations over time.
