OMC Sales Edge Up in December 2025
Pakistan’s oil marketing companies (OMCs) recorded a modest rise in fuel demand in December 2025, even as the sector continued to face tough financial conditions. According to data released by Arif Habib Limited, total industry sales volumes increased 6 percent year-on-year to 1.35 million tons, compared to 1.28 million tons in December 2024.
On a month-on-month basis, however, industry-wide sales slipped 5 percent from November’s 1.42 million tons. Analysts say this mixed picture reflects a combination of seasonal trends, price movements and ongoing pressure on household and business budgets.
First Half FY26 Volumes Show Mild Recovery
Looking at the broader trend, OMC sales for the first half of FY26 showed a mild recovery. Total volumes for July to December reached 8.16 million tons, up 2 percent from 8.03 million tons in the same period of the previous year. The improvement suggests that fuel demand is slowly stabilising after a period of weak consumption driven by high inflation and economic slowdown.
Both Motor Spirit (MS) and High-Speed Diesel (HSD) contributed to this recovery, while Furnace Oil (FO) continued to decline as power generation and industrial users moved to alternative fuels and newer plants.
Product-Wise Performance: MS and HSD Rise, FO Slides
Product-wise data for December 2025 shows that MS and HSD remained the main growth drivers. Petrol sales (MS) climbed 11 percent year-on-year to 0.63 million tons, reflecting steady demand from private vehicles and motorbikes. HSD sales increased 3 percent to 0.65 million tons, helped by transport, agriculture and commercial activity.
In sharp contrast, FO sales plunged 54 percent year-on-year in December, even though they jumped 40 percent month-on-month. The continued structural decline in FO is linked to reduced use of the fuel in power generation and tighter environmental standards. For OMCs, this means a gradual shift in product mix towards MS and HSD, with FO playing a shrinking role in overall portfolios.
Company-Wise Trends: PSO Slows, Smaller Players Grow
Among individual companies, Pakistan State Oil (PSO) remained the market leader but saw its total sales fall 7 percent year-on-year to 0.53 million tons in December. PSO’s MS sales dropped 5 percent, HSD fell 6 percent and FO volumes declined by a steep 71 percent, highlighting the pressure on legacy fuel segments.
Attock Petroleum Limited (APL) also reported weaker numbers, with total sales down 7 percent year-on-year to 0.10 million tons. Its HSD sales declined 10 percent and MS volumes fell 3 percent, while FO sales slumped 74 percent. In contrast, WAFI Petroleum posted a 10 percent year-on-year increase in total sales to 0.10 million tons, led by a 31 percent jump in HSD and a 2 percent rise in MS. HASCOL Petroleum also showed strong momentum, with total sales up 40 percent year-on-year to 0.05 million tons, supported by a 6 percent increase in MS and a 13 percent rise in HSD.
Half-Year Snapshot and Structural Shifts
For the first half of FY26, total industry sales reached 8.16 million tons, a 2 percent rise from 8.03 million tons in the same period last year. Both MS and HSD volumes grew by 3 percent year-on-year, while FO sales declined by 54 percent, confirming the long-term shift away from FO-based demand.
A report by advisory firm Mountain Ventures noted that despite the improvement in volumes, the financial health of OMCs remains under strain. Regulated fuel pricing, heavy discounting in the market and rising capital requirements for storage and logistics continue to squeeze industry economics, especially for smaller and mid-sized players.
Fragmented Market, Tight Margins and the Road Ahead
According to the report, Pakistan’s fuel retail market remains highly fragmented, with 45 licensed OMCs operating nationwide. While volumes are increasingly concentrated among a handful of large players, many smaller operators struggle to maintain pricing discipline and invest in storage, digitisation and modern retail infrastructure.
Uncertainty over the infrastructure development cess and sales tax recoverability has added to working capital pressures. At the same time, regulators are placing greater emphasis on digital reporting and field enforcement, signalling that any future margin relief is more likely to be tied to compliance and formalisation than across-the-board price adjustments. For OMCs, the challenge will be to balance volume growth with tighter controls, while shifting their business models towards more efficient, technology-driven operations.
