Petroleum Sales Dip 1% in October Amid High Prices
Pakistan’s petroleum product sales in October 2026 experienced a minor decline of 1% compared to the same month last year, despite a notable 10% increase from September. This trend mainly stems from elevated fuel prices, which have tempered overall consumption across the country.
Monthly Sales and Fuel Type Breakdown
During October, oil marketing companies sold 1.48 million tonnes of petroleum products, up from 1.35 million tonnes the previous month. Diesel sales saw the most substantial jump, increasing by 26% month-on-month to reach 662,000 tonnes due to seasonal demand from commercial vehicles, agriculture, and transportation sectors.
Conversely, petrol sales slightly decreased by 2%, totaling 642,000 tonnes. This reduction marked a continuation of lower fuel uptake compared to October 2025 levels. Furnace oil sales modestly increased by 2%, reflecting a sharp 243% rise year-on-year, though its share remains smaller than petrol and diesel.
Impact of Rising Fuel Prices
The higher prices are a critical factor influencing the dip in petroleum consumption. Average petrol prices hovered around Rs. 387 per liter in October, up almost 46% from the previous year. Meanwhile, diesel prices averaged Rs. 396 per liter, reflecting a 45% increase year-over-year, with diesel even surpassing Rs. 400 per liter following price revisions during the month.
Such steep price hikes have strained both individual consumers and industries relying heavily on fuel, limiting demand despite seasonal recovery in diesel use. This price sensitivity highlights the direct relationship between fuel costs and consumption patterns within Pakistan’s economy.
Sales Performance of Major Oil Companies
Pakistan State Oil (PSO) continued to dominate the market by selling around 693,000 tonnes of petroleum products in October, achieving an 8% increase compared to both the previous month and the prior year. Other important players such as Wafi Energy, Attock Petroleum, and Hascol also posted sales growth between 5% and 24% from September.
Why This Matters for Pakistan
These figures suggest a tentative recovery in diesel demand, pivotal for Pakistan’s transportation and agricultural sectors. However, petrol sales remain subdued, indicating broader economic pressures from sustained high fuel prices. As fuel costs rise, operational expenses across industries and household budgets are affected, potentially slowing economic activities and consumer spending at large.
For policymakers and stakeholders, monitoring such trends is essential to balance fuel pricing strategies, subsidy policies, and energy demand management. Stabilizing fuel consumption is critical for maintaining transport efficiency, agricultural output, and overall economic growth, especially amid global oil market uncertainties.
Highlighting these challenges, industry analyst Ahsan Tahir stated, “The higher fuel prices are a key reason for the slower recovery in petroleum sales compared to last year, illustrating consumers’ sensitivity to cost increases.”
