KARACHI: Sales of petroleum products fell 23 per cent year-on-year (YoY) in May to 1.17 million tonnes amid elevated fuel prices and subdued economic activity during Eidul Azha.
Excluding furnace oil (FO), oil marketing company (OMC) sales declined 21 per cent YoY to 1.14 million tonnes, marking the lowest May volume recorded since 2013, according to data released on Tuesday.
Analysts attributed the sharp decline to persistently high petroleum prices, which dampened fuel consumption across the country. Average motor spirit (MS) prices rose 59 per cent YoY to Rs402 per litre, while high-speed diesel (HSD) prices increased 57 per cent to Rs401.46 per litre.
HSD sales stood at 0.45 million tonnes during the month, the lowest level ever recorded for May. Industry analysts also pointed to elevated fuel prices and increased cross-border smuggling of diesel as key factors behind the decline. MS volumes fell 12 per cent YoY, while FO sales plunged 64 per cent due to higher reliance on hydel power generation.
On a month-on-month (MoM) basis, total petroleum sales declined 14 per cent in May. HSD sales fell 17 per cent to 0.45 million tonnes, while FO volumes dropped sharply by 79 per cent. Analysts linked the decline in FO consumption to the arrival of around three re-gasified liquefied natural gas (RLNG) cargoes during the month, compared with none in April, as well as higher hydel-based electricity generation. MS sales remained largely stable at 0.62 million tonnes.
Despite weak monthly performance, cumulative petroleum sales during the first 11 months of FY2026 edged up 1.0 per cent YoY to 14.93 million tonnes. Excluding FO, volumes rose 2.0 per cent YoY to 14.37 million tonnes.
Pakistan State Oil (PSO) recorded sales of 0.52 million tonnes in May, down 19 per cent YoY. Its MS sales declined 13 per cent to 0.25 million tonnes, while HSD volumes fell 31 per cent to 0.21 million tonnes. FO sales also dropped 57 per cent during the month.
PSO’s market share slipped to 42.5 per cent during 11MFY26 from 44.2 per cent in the corresponding period last year.Meanwhile, Gas & Oil Pakistan Ltd continued to strengthen its market position, increasing its market share to 11.9 per cent from 10.3 per cent a year earlier.
Sales of Attock Petroleum Limited fell 30 per cent YoY to 0.1 million tonnes in May, while its market share declined to 8.8 per cent during 11MFY26.Similarly, Wafi Energy Pakistan Limited, which operates the Shell fuel retail network in Pakistan, reported a 16 per cent YoY decline in sales. However, its market share improved slightly to 8.1 per cent over the eleven-month period.
Hascol Petroleum Limited posted a 37 per cent YoY decline in offtake, with its market share easing to 3.1 per cent.Petroleum levy (PL) collections reached approximately Rs1.392 trillion during 11MFY26, bringing the government close to its annual target of Rs1.468 trillion for FY2026.The federal government has budgeted average monthly PL collections of around Rs112 billion for the current fiscal year.
