Pakistan’s petroleum product sales posted a strong rebound in July 2026, rising 23 percent from a year earlier as lower fuel prices, stronger farm activity and a gradual economic recovery encouraged higher consumption across the country.
According to a report released by Arif Habib Limited (AHL) on Monday, total petroleum sales reached 1.51 million tonnes during the month. The brokerage said falling fuel prices, improving agricultural conditions and growing demand from both consumers and the auto sector were the main reasons behind the increase.
Excluding furnace oil, sales by oil marketing companies climbed 18.5 percent compared with July last year, making it the strongest July performance since 2021.
Petrol remained the biggest driver of growth, with motor spirit sales rising 23 percent year on year to 730,000 tonnes. High speed diesel sales also gained 19 percent, reaching 620,000 tonnes as transport and agricultural activity picked up.
Furnace oil recorded the sharpest increase, soaring 406 percent to 80,000 tonnes. AHL linked the jump to higher use of furnace oil for electricity generation.
The momentum was also visible on a monthly basis. Total petroleum sales rose 20 percent from June after domestic fuel prices eased in line with lower global oil prices and reduced geopolitical tensions.
Compared with the previous month, petrol sales increased 12 percent, while diesel volumes climbed 25 percent. Furnace oil sales surged 89 percent, supported by higher electricity demand during the summer season.
Among oil marketing companies, Pakistan State Oil emerged as the biggest winner. Its total sales climbed 38 percent year on year to 702,000 tonnes, driven by a 44.1 percent rise in petrol sales and a 40.3 percent increase in diesel offtake.
The report said PSO expanded its market share at the expense of Gas & Oil Pakistan, whose share in both the petrol and diesel markets slipped to multi month lows.
AHL also estimated that the government collected around Rs134 billion through the Petroleum Development Levy in July, keeping revenues broadly on track to meet the FY27 target of Rs1.68 trillion.
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