Petroleum Demand Rises as OMCs Post Strong September Sales

Pakistan’s oil marketing companies (OMCs) delivered a strong performance in September 2025, with total sales reaching 1.4 million tons, an 8% year-on-year (YoY) increase and a 5% rise compared to August, according to data released by Topline Securities. This momentum pushed first-quarter FY26 (July-September) sales to 3.89 million tons, up 6% from the same period last year. The growth was even more pronounced when excluding furnace oil (FO), a product whose demand has been steadily declining. Ex-FO sales jumped 13% YoY and 6% month-on-month (MoM) in September, clocking in at 1.36 million tons. For the first quarter, ex-FO sales hit 3.85 million tons, marking an impressive 11% YoY increase. Industry experts attribute the surge to a combination of stronger economic activity and tighter enforcement against smuggled fuel. The government’s crackdown on illegal fuel imports has helped channel demand back to formal OMCs, while a gradual economic recovery has lifted consumption across key petroleum products. Petrol (MS) sales rose 5% YoY in the first quarter, reflecting increased mobility and transport activity. High Speed Diesel (HSD) saw even stronger growth, up 15% YoY, as industrial and agricultural sectors ramped up operations. In contrast, FO sales plummeted 78% during the quarter, a direct result of new petroleum and climate levies introduced in the federal budget, which have made FO less attractive for power generation and industrial use. In August 2025 alone, total petroleum sales reached 1.37 million tons, up 5% YoY and 8% MoM. Petrol sales edged up 1% MoM, while HSD surged 13%. FO sales, however, continued their downward spiral, dropping 29% compared to August last year. Pakistan State Oil (PSO): The market leader posted flat sales for the quarter, with total volumes at 1.63 million tons. However, August sales rose 4% MoM. PSO’s FO sales collapsed by 86% YoY, but HSD and petrol sales grew 6% and 1%, respectively. Attock Petroleum Limited (APL): APL’s total sales dipped 1% in the quarter but improved 3% in August. FO sales were down 73% YoY, while HSD and petrol sales increased 12% and 3%, respectively. WAFI: The company recorded a stellar 31% YoY jump in first-quarter sales, with a 9% MoM increase in August, reflecting aggressive market expansion and improved distribution. Hascol: Hascol’s sales rose 5% YoY in the quarter and 3% MoM in August, signaling a modest recovery.