Pakistan’s oil marketing companies (OMCs) recorded a combined profit of Rs. 37 billion in FY2025-26, up 8% year-on-year, despite a slight decline in sales during the year. Higher gross profits and lower financing costs supported the sector’s earnings.
OMC sales fell 1% year-on-year to Rs. 3.716 trillion, mainly due to weaker sales by Pakistan State Oil (PSO), lower overall volumes and reduced LNG activity. Total sector sales volumes declined 0.8%, with motor spirit sales increasing 1% while high-speed diesel sales fell 0.6%.
Despite lower sales, gross profit increased 16% to Rs. 140 billion, taking the sector’s gross margin to 3.8%. Financing costs also declined 24% during the year as lower interest rates and improved liquidity reduced companies’ reliance on short-term borrowing. However, the sector’s effective tax rate remained high at 58%.
Fuel prices increased significantly during FY26. Motor spirit prices rose 17% year-on-year to Rs. 299.24 per litre, while high-speed diesel prices increased 19% to Rs. 309.54 per litre. Higher ex-refinery prices were a major factor behind the increase, with MS ex-refinery prices rising 14% to Rs. 191.33 per litre and HSD prices jumping 32% to Rs. 232.54 per litre.
The LNG segment recorded weaker activity during the year. PSO handled 79 LNG cargoes in FY26, compared with 110 cargoes a year earlier. The average delivered ex-ship LNG price also declined to $8.49 per million British thermal units from $9.13.
Among major OMCs, PSO’s motor spirit volumes declined 4.8%, while HSD volumes fell 5.6%. Its market share consequently dropped by 1.6 percentage points to 42.4%.
Attock Petroleum Limited also recorded lower volumes, with MS sales declining 1.6% and HSD sales falling 4.5%. Its market share decreased by 0.5 percentage points to 8.2%.
Meanwhile, Gas & Oil Pakistan Ltd and other smaller oil marketing companies increased their market shares during FY26, indicating stronger competition and a gradual shift in market presence toward smaller players.
