OMC sales: Recovery remains elusive

Pakistan’s petroleum sales rose 4 percent year-on-year to 5.59 million tons in July-October FY27, but Business Recorder reported that the increase was largely driven by furnace oil. Sales excluding furnace oil fell 2 percent over the four-month period, while October sales excluding it were down 6 percent year-on-year. Petrol and HSD volumes also weakened in October, falling 2 percent and 7 percent respectively.

Furnace oil use climbed to 95,000 tons in October, more than triple the level a year earlier, amid RLNG supply disruptions affecting power generation. Higher fuel prices continued to restrain demand, with October petrol averaging Rs387 per litre and diesel Rs396. Listed OMC earnings nevertheless rose 144 percent year-on-year in 1QFY27, supported chiefly by higher prices and inventory gains; refinery production also increased, though output gains were strongest in furnace oil. Dealer margins were raised, while OMC margins were unchanged.