Pakistan’s OMC volumes fell sharply by 23% YoY and 14% MoM to around 1.2 million MT, with HSD down 32% YoY due to high prices and reduced demand during Eid. OMC volumes for the first 11 months of FY26 were slightly up 1% YoY at 14.9 million tons.

– HSD sales dropped 32% YoY and 17% MoM to approximately 455,000 MT in May, experiencing a 45% YoY decline. WAFI managed to limit its decline to 24%, boosting its market share to 8.3%.

– MS sales were about 617,000 MT, down 12% YoY but flat MoM, mainly due to lifted curfew restrictions. WAFI also led in this segment, increasing its market share to 10.2%.

– Furnace Oil sales plummeted 64% YoY and 79% MoM to around 29,000 MT, driven by a shift to cheaper power generation alternatives.

– Only PSO and WAFI expanded their market shares, with PSO increasing to 44.2% and WAFI to 8.8%.

High oil prices and expected tax increases in FY27, including higher levies, are likely to keep retail prices elevated and could worsen fuel smuggling. PSO is recommended as a top pick in the sector, with a target price of PKR 570/sh.

Courtesy – IMS Research