Karachi, August 2, 2025 – Petroleum sales in Pakistan saw a sharp drop of 22% in July 2025 compared to the previous month, mainly due to heavy monsoon rains and rising fuel prices.
Analysts at Arif Habib Limited said that floods disrupted transport and fuel demand, while petroleum prices increased sharply due to a rise in global oil rates and the new PKR 2.5 per liter Carbon Sustainability Levy.
Sales of motor spirit (MS) fell by 16% to 0.61 million tons, while high-speed diesel (HSD) sales dropped by 18% to 0.51 million tons on a monthly basis. Furnace oil (FO) saw the biggest monthly decline, plunging 88% to just 0.02 million tons. This was largely due to reduced electricity demand and lower power generation during the rainy season.
However, on a year-on-year (YoY) basis, total petroleum sales rose slightly by 2%, reaching 1.22 million tons compared to 1.20 million tons in July 2024. This increase was supported by lower YoY prices of MS and HSD, better control on smuggled fuel from Iran, and a rise in vehicle sales.
MS and HSD sales grew by 4% and 9% YoY, respectively. On the other hand, furnace oil sales declined by 80% YoY as power producers reduced reliance on FO-based generation.
Looking at company-wise performance, Pakistan State Oil (PSO) recorded a 7% YoY drop in petroleum sales to 0.51 million tons. APL’s sales also declined by 3% to 0.10 million tons. However, WAFI (Shell) and HASCOL saw their sales rise by 22% and 16% YoY, respectively.
PSO’s market share fell to 41.6% from 45.6% last year, while APL dropped slightly to 8.1%. In contrast, WAFI’s market share improved to 8.6%, HASCOL’s to 3.7%, and GO’s (Gas and Oil Pakistan Ltd) market share jumped significantly to 14.2% from 8.9% in July 2024.
Petroleum Levy (PL) collection reached PKR 107 billion in July, while PKR 3.56 billion was collected under the Carbon Sustainability Levy. The government aims to collect PKR 1,468 billion in PL during FY26.