Pakistan’s petroleum product sales rebounded strongly in January 2026, rising 10% year-on-year (YoY) to 1.52 million tonnes.
Compared to December 2025, sales were also up 12% month-on-month (MoM), according to data from the Oil Companies Advisory Council (OCAC) and analysis by Topline Securities and Arif Habib Limited.
The increase reflects early signs of economic recovery, as higher fuel consumption often points to more activity in transport, industry, agriculture, and logistics.
Breakdown of Key Petroleum Products
Motor Spirit (Petrol): 641,000 tonnes, up 3% YoY and 2% MoM. Petrol is mainly used in motorcycles, cars, and small transport vehicles.
High-Speed Diesel (HSD): 664,000 tonnes, up 11% YoY and 20% MoM. Diesel powers trucks, buses, agricultural machinery, and freight transport.
Furnace Oil (FO): 102,000 tonnes, up 76% YoY and MoM, the highest in seven months. Despite the rise, demand remains low as power generation shifts to cheaper alternatives like coal, RLNG, or solar.
Excluding furnace oil, sales reached 1.41 million tonnes, up 7% YoY and 9% MoM, showing a strong recovery in transport-related fuels.
For the first seven months of FY26 (July 2025–January 2026), total petroleum sales hit 9.7 million tonnes, up 3% YoY, while ex-FO sales rose 5% YoY to 9.4 million tonnes.
Reasons Behind the Increase
Analysts point to several factors driving growth:
Lower fuel prices: Petrol dropped about 4% MoM, and diesel fell 6% MoM.
Normalization after disruptions: A nationwide strike in December had slowed sales.
Economic improvements: Better control over fuel smuggling, easing inflation, and a pickup in large-scale manufacturing increased demand.
Rising petroleum sales, particularly in transport fuels, indicate growing economic momentum.
While furnace oil remains weak, the overall trend suggests cautious optimism for Pakistan’s industrial and economic recovery in FY26.