Higher fuel prices and petroleum levy push transport and industrial demand lower, though full-year sales remain slightly positive
Petroleum product sales in Pakistan declined 23% year-on-year in May 2026, reflecting the impact of higher fuel prices and reduced consumption across key economic sectors, industry data showed.
On a month-on-month basis, overall petroleum sales dropped 14%, indicating continued pressure on demand amid elevated retail fuel prices.
Despite the monthly contraction, cumulative petroleum sales for the first eleven months of FY2025-26 stood at 14.9 million tonnes, slightly higher than 14.8 million tonnes in the same period last year, marking a marginal 1% year-on-year increase.
Analysts at Topline Securities attributed the monthly decline to significantly higher fuel prices, which have reduced consumption in transport, agriculture and industrial operations.
Fuel prices surge sharply
During May 2026, Motor Spirit (petrol) prices rose 59% year-on-year to an average of Rs402 per litre, compared with Rs253 per litre in the same month last year.
High-Speed Diesel (HSD) prices increased 57% year-on-year to Rs401 per litre, further pressuring demand across logistics and goods movement sectors.
Excluding furnace oil trend
Excluding Furnace Oil (FO), petroleum sales stood at 1.14 million tonnes in May 2026, down 21% year-on-year and 7% month-on-month.
For the July–May period of FY2025-26, ex-FO sales reached 14.4 million tonnes, reflecting a 2% year-on-year increase.
Product-wise performance
Motor Spirit sales fell 12% year-on-year to 617,000 tonnes in May 2026, while remaining largely flat on a monthly basis.
High-Speed Diesel volumes declined 32% year-on-year and 17% month-on-month to 455,000 tonnes.
Furnace Oil recorded the steepest drop, falling 64% year-on-year and 79% month-on-month to 29,000 tonnes, as demand normalized after unusually high usage in April.
Company-wise trends
Among oil marketing companies, Attock Petroleum Limited reported sales of 97,000 tonnes, down 30% year-on-year and 19% month-on-month.
Pakistan State Oil recorded sales of 518,000 tonnes, down 19% year-on-year and 12% month-on-month, though its market share increased slightly to 44.15%.
Wafi Energy Pakistan was the only major player to post monthly growth, reporting 103,000 tonnes in sales, up 3% month-on-month but down 16% year-on-year.
Hascol Petroleum Limited recorded sales of 34,000 tonnes, down 37% year-on-year and 5% month-on-month.
PDL collections remain strong
Government collections from Petroleum Development Levy (PDL) reached Rs1.33 trillion during the first eleven months of FY2025-26, equal to 91% of the full-year target of Rs1.47 trillion.
Analysts expect fuel demand trends to remain sensitive to future price movements, inflation levels and broader economic activity in the months ahead.
