Pakistan’s petroleum sales fall 2% annually as higher petrol and diesel prices curb demand, while seasonal farming activity boosts diesel consumption.
KARACHI: Pakistan’s petroleum product sales declined 2% year-on-year (YoY) to 1.35 million tonnes in September 2026, as elevated fuel prices weighed on demand, although sales volumes increased 7% month-on-month (MoM), according to industry data.
Excluding furnace oil (FO), oil marketing company (OMC) sales fell 7.7% YoY, while rising 7.8% MoM to 1.25 million tonnes.
The annual decline was mainly attributed to higher fuel prices. The average motor spirit (MS) price increased by PKR36.63 per litre YoY to PKR374.27, while the average high-speed diesel (HSD) price surged by PKR128.93 per litre to PKR400.31.
Higher prices, combined with declining diesel imports, contributed to an 11% YoY decline in HSD sales to 0.53 million tonnes. MS volumes also fell 5% YoY.
In contrast, furnace oil sales surged 601% YoY, driven by increased demand for FO-based power generation amid disruptions in RLNG supplies.
The month-on-month increase in overall petroleum sales was largely supported by stronger HSD demand. HSD sales rose 25% MoM to 0.53 million tonnes, supported by seasonal requirements linked to the start of the Rabi crop season.
MS offtake declined 2% MoM to 0.65 million tonnes, while furnace oil sales fell 5% during the month.
PSO volumes rise 12%
Pakistan State Oil (PSO) recorded a 12% YoY increase in sales volumes in September, outperforming the broader OMC market.
Cumulatively, petroleum product sales during the first quarter of FY27 increased 6% YoY to 4.11 million tonnes, compared with 3.89 million tonnes during the corresponding period last year.
By product, MS sales stood at 2.05 million tonnes, while HSD volumes reached 1.57 million tonnes. Furnace oil sales increased to 0.27 million tonnes during 1QFY27.
The September figures highlight the contrasting impact of fuel prices and seasonal demand on Pakistan’s petroleum market. Higher petrol and diesel prices continued to restrain annual consumption, while increased agricultural activity provided support to diesel demand.