OMC sales rise, but core demand remains weak

Business Recorder reported that Pakistan's oil marketing companies posted higher total sales in 1QFY27, though the gain is largely driven by furnace oil rather than broader fuel demand. September sales of petroleum products totalled 1.35 million tons, roughly 2 percent below the same month last year and close to 7 percent above August. The monthly rise came mostly from high-speed diesel, where volumes climbed nearly 25 percent, a pickup the report links to harvesting and Rabi sowing.

Petrol volumes were weak, as sales fell 5 percent from a year earlier and 2 percent from August, with sharply higher fuel prices cited as a drag. Furnace oil was the outlier, with September volumes nearly seven times the year-earlier figure, a rise linked to more FO-based power generation as RLNG availability is constrained. Stripping out FO, September sales declined close to 8 percent annually, so the headline increase does not signal stronger underlying demand.

Total petroleum sales rose about 6 percent to 4.11 million tons in the first quarter, with petrol up 4 percent and HSD down 3 percent. Without FO, quarterly sales were essentially flat compared with a year earlier, pointing to steadier consumption but no broad recovery. The report says HSD could draw support from seasonal farm and freight activity, while high fuel prices continue to restrain consumption.