Pakistan’s oil marketing companies (OMCs) witnessed a steep drop in petroleum sales during June 2026, with total sales declining 20 percent year-on-year to 1.26 million tonnes, according to a report by Arif Habib Limited.

The brokerage attributed the decline mainly to weaker demand for both petrol and high-speed diesel (HSD). Petrol sales fell 11 percent from a year earlier to 650,000 tonnes, while diesel sales dropped 20 percent to 500,000 tonnes. Furnace oil recorded the sharpest decline, plunging 68 percent to 40,000 tonnes.

The report noted that higher domestic diesel prices and the resurgence of cross-border fuel smuggling likely weighed on HSD consumption. Meanwhile, furnace oil demand remained subdued as electricity generation increasingly shifted away from oil-fired power plants.

Despite the sharp annual decline, sales improved compared to May. Total petroleum sales rose 7 percent month-on-month to 1.26 million tonnes, supported by lower domestic fuel prices after international crude oil prices eased and geopolitical tensions subsided.

On a monthly basis, petrol sales increased 5 percent, diesel sales climbed 9 percent, while furnace oil posted the strongest rebound, surging 41 percent from the previous month.

For the full fiscal year 2025-26, however, total OMC sales remained almost unchanged at 16.19 million tonnes, reflecting virtually flat growth. Strong demand during the first three quarters was largely offset by weaker sales in the final quarter, amid the Iran-Israel conflict and changing market conditions.

Among listed oil marketing companies, Pakistan State Oil (PSO) retained its dominant position with 9.28 million tonnes of cumulative sales during FY26, accounting for nearly 57 percent of total industry volumes. Attock Petroleum Limited (APL) ranked second with 1.73 million tonnes, followed by Shell Pakistan at 1.32 million tonnes, Hascol Petroleum with 500,000 tonnes, and Wafi Energy Pakistan (formerly Total PARCO) with 110,000 tonnes.