Pakistan State Oil (PSO) Sales Edge Higher, But Market Share Slips

Pakistan’s petroleum sector showed mixed signals in August 2025, with some companies posting growth while others lost ground in the competition.

Pakistan State Oil (PSO), the country’s largest fuel supplier, saw its sales rise 4% year-on-year to 0.55 million tons. The growth came from stronger demand for petrol (MS) and diesel (HSD), which improved by 4% and 10% YoY, respectively. However, sales of furnace oil (FO) plunged 86%, reflecting the sector-wide decline in FO demand as power generation shifts away from it.

Despite the growth in volumes, PSO’s market share fell to 41.9% in 2MFY26, down from 44.5% in the same period last year.

Here’s how other players performed:

• APL: Sales slipped slightly, down 1% YoY, with market share now at 8.4% (-0.5% YoY).
• WAFI (Shell Pakistan): A solid performance, sales up 16% YoY, market share at 8.4% (+1.0% YoY).
• HASCOL: Sales remained flat, but market share edged up to 3.4% (+0.1% YoY).
• GO (Gas & Oil Pakistan Ltd): A big winner — market share jumped to 13.1% (+4.5% YoY), showing its growing strength in the fuel retail market.
• Other OMCs: Market share dropped to 24.8% in 2MFY26.

On the fiscal side, the government collected PKR 226.9 billion in Petroleum Levy (PL) during 2MFY26, while Customs Surcharge Levy (CSL) collections stood at PKR 7.4 billion. The Federal Government has set a revised PL target of PKR 1,468 billion for FY26, which means it needs to collect around PKR 112 billion every month to stay on track.

Key takeaway

While PSO remains the market leader, its shrinking market share shows rising competition from smaller players like GO and WAFI. Investors and industry watchers should keep an eye on how these shifts reshape the energy market in Pakistan.

Source: Arif Habib Limited

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