Pakistan’s oil marketing companies (OMCs) witnessed a significant drop in petroleum sales during June 2026, reflecting weaker fuel demand across the country. According to a report by Arif Habib Limited, total petroleum sales declined by 20 percent year-on-year, reaching 1.26 million tons.
The report attributes the decline primarily to lower consumption of both motor spirit (MS), commonly known as petrol, and high-speed diesel (HSD). The slowdown highlights the challenges facing Pakistan’s fuel market amid rising costs and changing consumption patterns.
High-speed diesel recorded one of the steepest declines during the month. Sales dropped 20 percent year-on-year to 500,000 tons, indicating reduced demand from key sectors that rely heavily on diesel, including transportation, agriculture, and commercial activities.
Petrol sales also moved downward, although at a comparatively slower pace. Motor spirit sales fell 11 percent year-on-year to 650,000 tons, suggesting that higher fuel prices and cautious consumer spending may have contributed to reduced consumption.
Meanwhile, furnace oil (FO) experienced the sharpest decline among major petroleum products. Sales plunged 68 percent year-on-year to just 40,000 tons, continuing the trend of lower reliance on oil-fired power generation in Pakistan’s energy sector.
According to Arif Habib Limited, elevated domestic diesel prices likely discouraged consumption during June. The report also pointed to the resurgence of cross-border fuel smuggling as another factor affecting legitimate diesel sales, as illegally imported fuel can divert demand away from licensed oil marketing companies.
The continued weakness in furnace oil demand was linked to reduced electricity generation from oil-based power plants. As Pakistan increasingly relies on alternative energy sources and more cost-effective fuel options, furnace oil consumption has remained under pressure.
The decline in petroleum sales reflects broader economic conditions, where high fuel costs and shifting market dynamics continue to influence consumer behavior and industrial activity. Oil marketing companies are expected to closely monitor demand trends in the coming months as policymakers address energy pricing and supply challenges.
Industry analysts will also be watching whether changes in fuel prices, anti-smuggling measures, or seasonal demand patterns help stabilize petroleum sales during the second half of the year.
