Pakistan State Oil reports 20% year-on-year sales volume growth during the first nine months of FY26, plans electric vehicle charging facilities and explores refinery upgrades amid supply-chain challenges.
Karachi, October 28, 2026: Pakistan State Oil Company Limited (PSO) has recovered its market share to around 40% and is planning winter liquefied natural gas (LNG) supplies, electric vehicle (EV) charging facilities and strategic refinery investments, according to key takeaways from its Annual General Meeting (AGM).
Management said PSO’s sales volumes grew by approximately 20% year-on-year during the first nine months of FY26, although volumes declined in the fourth quarter following a sharp increase in petroleum prices. Geopolitical disruptions and reduced LNG availability also affected business performance.
Despite regional challenges, PSO received 11 LNG cargoes from QatarEnergy since March under existing contractual arrangements. The government is coordinating winter procurement to ensure adequate supplies.
The company also received approximately Rs10 billion in circular debt payments from the Power Division after the financial year-end and Rs26 billion from Sui Northern Gas Pipelines Limited (SNGPL) during the final quarter. Management said PSO’s LNG-related accounts with SNGPL had been fully reconciled.
PSO’s market share recovery, particularly since July, was attributed to improved product availability and better network coordination rather than aggressive discounting. Management expects industry sales to remain broadly stable or record modest growth as elevated fuel prices weigh on consumer demand.
The company is upgrading automation across retail outlets, depots and its supply chain to qualify for revised oil marketing company (OMC) margins. The upgrades are expected to be completed by the end of March 2027.
PSO is also prioritising high-throughput retail locations and plans to install EV charging facilities in major cities and along key routes, including Karachi, Hyderabad, Lahore, Gujranwala, Rawalpindi and Peshawar. The initiative aims to help offset potential declines in petrol sales as electric vehicle adoption increases.
Regarding Pakistan Refinery Limited (PRL), management described the refinery as a strategic asset, citing the importance of backward integration for profitability and supply security. PSO is discussing potential upgrade and financing options, including equity participation, although no final arrangement has been announced. Any decision on changes to its stake will depend on technical assessments, upgrade requirements, Euro V compliance and the prospective partner.
Meanwhile, PSO, SOCAR and the Frontier Works Organisation (FWO) are jointly developing the White Oil Pipeline, with PSO holding a majority stake. Tariff and commercial negotiations are nearing completion, with some issues still outstanding.
Management also highlighted improved LPG volumes, revenue and profitability, while identifying regulated pricing as a constraint on competitiveness. Potential reforms allowing import-parity pricing could support the business.
PSO further stressed the need to diversify crude oil and finished-product sourcing to reduce exposure to geopolitical disruptions. Management said the company had no intention of exiting the LNG business, provided outstanding structural issues were resolved with government support.