OMC Sales Dip 10% But PDL Collection Races Towards PKR 1.47 Trillion Target
Pakistan’s Oil Marketing Companies (OMCs) reported a significant speed bump in November 2025, with industry-wide sales volume for petroleum products falling by 10% year-on-year (YoY). The dip, however, is being viewed by analysts as a temporary correction against a strong sales base from the previous year, rather than a sign of a sharp economic contraction.
The total sales for the month clocked in at 1.418 million metric tons (MT), a figure that still represents a modest 1% cumulative growth for the first five months of the fiscal year (5MFY26). Crucially, this slight volume increase is helping the government successfully meet its ambitious revenue targets through the Petroleum Development Levy (PDL).
The November Downturn Explained:
The most notable declines were seen in the core retail fuels:
• High-Speed Diesel (HSD): Sales plummeted by 13% YoY to 683,000 MT. HSD, which fuels the transport and agricultural sectors, faced a high comparison base from November 2024, a month that had seen unusually high volumes.
• Motor Spirit (MS/Petrol): Volumes dropped 9% YoY to 643,000 MT.
• Furnace Oil (FO): Continuing a long-term structural trend, FO sales saw a drastic decline of 32% YoY as the power sector prioritizes cheaper alternatives like Regasified Liquefied Natural Gas (RLNG) and coal.
“While the headline figure of a 10% decline looks startling, it’s a high base effect at play,” commented a lead analyst from a prominent brokerage firm. “The fact that sales excluding Furnace Oil ‘the true measure of economic activity’ are still up 4% in 5MFY26 shows the underlying demand remains resilient, supported by the ongoing crackdown on smuggled Iranian fuel.”
PDL Collection- The Government’s Success Story:
Despite the volumetric volatility, the government’s fiscal health remains robust, largely due to strong PDL collections.
The federal government has set an ambitious PDL collection target of PKR 1.47 trillion for the full Fiscal Year 2026. Data indicates that an estimated PKR 621 billion, approximately 42% of the annual target has already been collected in the first five months of the fiscal year (5MFY26).
This impressive collection rate is a direct result of consistently high PDL rates charged on petroleum products, which are crucial for the government to manage its fiscal deficit and secure external financing. The steady inflow of PDL revenue provides a stable, non-tax revenue stream necessary for macroeconomic stability.
Market Dynamics: PSO’s Resilience and WAFI’s Rise:
The sales report also highlighted shifting market share dynamics:
• Pakistan State Oil (PSO): The market giant saw its sales drop by 19% YoY but managed to increase its overall market share to 45.36% (up from 42.95% in October), cementing its leadership position in the High-Speed Diesel segment.
• Wafi Energy (WAFI): The company continued its aggressive growth trajectory, posting a strong 8% YoY sales increase, underscoring the fierce competition and the success of newer players in capturing volume.
• Attock Petroleum (APL): APL recorded a significant 17% YoY drop in sales, mainly due to underperformance in the HSD category, leading to a slight contraction in its market share.
Industry observers expect OMC sales to rebound, forecasting an annual sector growth in the range of 7-10% for the full FY26, underpinned by stabilizing domestic prices and continued efforts to formalize the fuel supply chain.