Pakistan's oil marketing sector sold 5.59 million tons of petroleum products between July and October of FY27, the fiscal year that runs from July 2026 to June 2027. That was 4 percent more than in the same months a year earlier. Most of the gain, however, came from furnace oil, a heavy fuel used mainly for power generation, while demand for petrol and high-speed diesel (HSD) stayed subdued.
Furnace oil carries the headline numbers
In October 2026, total petroleum sales stood at 1.48 million tons. That was 1 percent lower than a year earlier but 10 percent higher than the previous month. Excluding furnace oil (FO), October sales fell 6 percent year-on-year, and the figure for the four-month period dropped 2 percent.
Furnace oil consumption more than tripled from a year earlier to 95,000 tons in October. The rise is linked to disruptions in regasified liquefied natural gas (RLNG) supplies, which pushed the power sector to rely more heavily on furnace oil for electricity. The sales data point to supply constraints rather than stronger industrial demand.
Petrol and diesel remain weak
Petrol sales fell 2 percent year-on-year in October, while HSD sales dropped 7 percent. Diesel use rose 26 percent from September, largely because of seasonal farm demand during the Rabi sowing season, the winter crop planting period. Across July to October, petrol sales edged up 2 percent, but HSD volumes fell 4 percent.
Pump prices remain high. Petrol averaged about Rs387 per litre in October, up 46 percent from a year earlier, while diesel averaged Rs396 per litre, an increase of roughly 45 percent. Higher prices are affecting how much people travel, how freight moves by road, and what transport costs businesses and households.
Refineries and oil company earnings
Refinery output rose 9.2 percent year-on-year in October, with furnace oil production up 52 percent. Petrol output fell 9.5 percent and diesel output fell 1.5 percent over the same month. Total refinery production for July to October grew by nearly 20 percent, supported by better crude availability and higher plant utilisation.
Listed oil marketing companies (OMCs), which sell fuel through retail pumps, saw earnings rise 144 percent year-on-year in the first quarter of FY27, covering July to September. Revenues rose 18 percent over the same period. The gain came mainly from higher petroleum prices and inventory gains, so it reflects pricing rather than a recovery in demand.
On the regulatory side, dealer margins, the commission paid to fuel station operators, have been increased. OMC margins remain unchanged, and further revisions are linked to supply-chain automation requirements. Higher operating and financing costs continue to pressure distributors.
What happens next
The sector's recovery will depend on fuel prices, farm activity and broader economic demand. Furnace oil may keep supporting headline volumes, but a meaningful recovery needs sustained growth in petrol and diesel use. Higher retail fuel prices are expected to keep that growth in check in the coming months.
Aasan alfaaz mein
Julai se October tak petroleum ki sale 4 percent barhi hai, lekin zyada tar izafa furnace oil ki wajah se hua hai. Petrol aur diesel ki khapat abhi bhi kam hai, aur October mein petrol ka average Rs387 fi litre tha. Iska matlab hai ke aam logon ke liye safar aur transport mehnga hi reh sakta hai. Tel companiyon ka munafa zyada tar qeematon aur stock ke faiday se aaya hai, na ke mazboot demand se.
