Petroleum sales drop 20% YoY in June

Petroleum sales remained under pressure across Pakistan in June 2026, with total oil marketing companies (OMCs) sales falling 20 per cent year-on-year (YoY) to 1.26 million tonnes, reflecting weaker demand amid elevated fuel prices and increased cross-border smuggling.

 

On a month-on-month (MoM) basis, however, petroleum sales recovered by 7.0 per cent, supported by lower domestic fuel prices following a decline in global oil prices and easing geopolitical tensions.

 

Excluding furnace oil (FO), total OMC sales declined 15 per cent YoY, while rising 6.0 per cent compared with the previous month.The annual decline was primarily driven by lower consumption of motor spirit (MS) and high-speed diesel (HSD), with HSD recording a steeper contraction. Analysts attributed the slowdown to higher domestic retail fuel prices, which also encouraged a resurgence in cross-border smuggling, particularly of diesel.

 

HSD sales dropped 20 per cent YoY to 0.5 million tonnes in June, while MS sales fell 11 per cent from a year earlier due to weak consumer demand and elevated fuel prices.FO sales recorded the sharpest decline, plunging 68 per cent YoY, mainly due to higher hydel-based electricity generation, which reduced reliance on furnace oil for power production.

 

For FY26, cumulative OMC sales stood at 16.2 million tonnes, broadly unchanged from the previous year. Analysts noted that steady demand during most of the fiscal year was largely offset by weaker consumption in the final quarter following the outbreak of the US-Iran conflict.

 

On a monthly basis, MS sales rose five per cent to 0.65 million tonnes in June, while HSD sales increased nine per cent to 0.50 million tonnes.FO sales also rebounded sharply, rising 41 per cent MoM, supported by higher electricity demand during the summer season, which increased fuel requirements for power generation.

 

Attock Petroleum Limited (APL) recorded petroleum sales of 104,000 tonnes in June 2026, down 21 per cent YoY, although volumes increased seven per cent compared with the previous month. The company’s market share for FY26 declined by 53 basis points to 8.22 per cent.

 

Pakistan State Oil (PSO), the country’s largest oil marketing company, posted sales of 527,000 tonnes in June, down 20 per cent YoY but up 2.0 per cent MoM. Its market share for the month declined by 226 basis points to 41.9 per cent, while its cumulative FY26 market share slipped by 159 basis points to 42.44 per cent.

 

Wafi Energy recorded sales of 117,000 tonnes in June, reflecting an 8.0 per cent YoY decline, although volumes rose 13 per cent from the previous month. Meanwhile, Hascol Petroleum reported sales of 44,000 tonnes, broadly unchanged from a year earlier but registering a 29 per cent MoM increase.

 

Meanwhile, the government exceeded its petroleum development levy (PDL) collection target for FY26. Against the annual target of Rs1.47 trillion, PDL collections are estimated to have reached approximately Rs1.51 trillion during the fiscal year, surpassing the budgeted target.

Source: The International News Pakistan