AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: In a striking development for the oil marketing sector, the latest figures reveal a notable increase in overall sales despite a substantial decline in furnace oil demand. The Oil Marketing Companies (OMC) reported a 7% year-on-year rise in August 2025, with sales volumes reaching 1.3 million tons. This signifies a 6% growth month-on-month, showcasing an upward trajectory despite market challenges.
Motor Spirit (MS) witnessed an 8% year-on-year increase, while Hi-Speed Diesel (HSD) sales surged by an impressive 14% over the same period. Conversely, Furnace Oil (FO) sales experienced a sharp decline, plummeting by 71% compared to last year. This trend contributed to an overall 5% year-on-year growth in OMC sales volumes for the first two months of the fiscal year 2026.
Pakistan State Oil (PSO) maintained its market dominance with a steady 42% market share in August 2025, marking consistent performance over the past eight months. Despite fluctuations in individual product sales, PSO’s position remains largely unaffected, demonstrating resilience in a volatile market.
The Petroleum Development Levy (PDL) collection for the initial two months of FY26 is projected to be approximately Rs228 billion. Analysts suggest that with the continued imposition of elevated levies on MS and HSD, achieving the annual revenue target appears feasible as long as sales volumes remain consistent.
The mixed results underscore the complexities facing the OMC sector, with contrasting trends across different petroleum products. As the industry navigates these challenges, the focus remains on balancing demand shifts and maximizing revenue through strategic pricing and market share retention.