Key Takeaways
- Pakistan's petroleum product sales increased by 23% year-on-year in July.
- Sales of high-speed diesel and motor spirit rose significantly, up 19% and 23% respectively.
- Government collections from Petroleum Development Levy remained on track for FY27 target.
Pakistan's petroleum product sales saw a significant boost in July 2026, with total volumes increasing by 23% year-on-year (YoY) to 1.51 million tons, according to Arif Habib Limited (AHL).
The surge was primarily driven by lower fuel prices and improved farm economics, alongside a gradual economic recovery that bolstered demand in the auto sector.
High-speed diesel (HSD) volumes increased by 19% YoY to 0.62 million tons, while motor spirit (MS), commonly known as petrol, rose by 23% to 0.73 million tons.
Furnace oil (FO) sales witnessed a remarkable increase of 406% YoY to 0.08 million tons, attributed mainly to higher consumption for power generation.
On a month-on-month basis, total petroleum sales increased by 20%, supported by lower domestic petroleum prices following the decline in global oil prices amid easing geopolitical tensions.
Motor spirit sales rose by 12% MoM, while HSD volumes climbed by 25%. FO sales also increased by 89% over the previous month due to higher seasonal demand for power generation during summer months.
Pakistan State Oil (PSO) outperformed the sector with total sales rising by 38% YoY to 702,000 tons. This was led by a 44.1% increase in MS sales and a 40.3% rise in HSD offtake.
GO's market share for MS fell to 5%, the lowest since June 2024, while its HSD market share declined to 7%, the lowest since May 2024, indicating PSO's growing dominance in the sector.
The government collected around Rs134 billion in Petroleum Development Levy (PDL) during July, keeping collections broadly on track for achieving the FY27 target of Rs1.68 trillion, which is 11.9% higher than the revised FY26 target.
