Petrol, diesel and furnace oil volumes rise amid improving economic activity
ISLAMABAD: Pakistan’s petroleum product sales recorded a strong increase in July 2026, rising 23% year-on-year to 1.51 million tonnes, supported by lower fuel prices, stronger agricultural activity and a gradual recovery in the economy, according to a report released by Arif Habib Limited (AHL).
The brokerage said the increase reflected improved farm economics, rising demand from the auto sector and greater overall economic activity. Excluding furnace oil (FO), sales by oil marketing companies (OMCs) climbed 18.5% compared with the same month last year, marking the strongest July performance since 2021.
Motor spirit (MS), commonly known as petrol, increased 23% year-on-year to 730,000 tonnes, while high-speed diesel (HSD) sales rose 19% to 620,000 tonnes.
Meanwhile, furnace oil sales surged 406% to 80,000 tonnes, largely due to higher consumption for electricity generation.
Monthly demand also strengthens
On a month-on-month basis, total petroleum sales increased 20%, driven by reduced domestic fuel prices following declines in international crude oil prices and easing geopolitical tensions.
Petrol sales gained 12% over June, while diesel volumes rose 25%. Furnace oil demand also jumped 89%, which AHL attributed to seasonal increases in electricity generation during the summer months.
The report noted that improving economic conditions and lower fuel costs continued to encourage higher consumption across key sectors.
PSO expands market share
Among oil marketing companies, Pakistan State Oil (PSO) outperformed the broader market, with total sales rising 38% year-on-year to 702,000 tonnes.
The company’s petrol sales increased 44.1%, while diesel offtake climbed 40.3%. According to AHL, PSO gained market share at the expense of Gas & Oil Pakistan (GO), whose market share in petrol declined to 5%, the lowest level since June 2024, while its diesel share fell to 7%, the lowest since May 2024.
Separately, AHL estimated that the government collected approximately Rs134 billion through the Petroleum Development Levy (PDL) during July, keeping collections broadly on track to meet the FY27 target of Rs1.68 trillion, representing an 11.9% increase over the revised FY26 target.
