ISLAMABAD: Pakistan’s petroleum sales fell 23 percent in May from a year earlier to their lowest level for the month in 13 years, data compiled by a leading research and brokerage firm showed on Tuesday, as fuel prices above Rs400 per liter curbed demand and weighed on transport activity.
The decline comes days before Pakistan unveils its annual budget on June 10 and amid concerns that volatility in global oil markets linked to the Iran conflict could keep energy costs elevated for import-dependent economies.
According to a report by Arif Habib Limited Research, total petroleum sales dropped to 1.17 million tons in May, while sales excluding furnace oil (FO), mainly used for power generation, also fell sharply during the month.
“Excluding FO, OMC [oil marketing companies] volumes fell to 1.14 million tons, the lowest level recorded for any month of May since May 2013, declining 21 percent year-on-year and 7 percent month-on-month,” the report said.
The firm attributed the decline primarily to weaker fuel demand amid higher prices and reduced economic activity during Eid Al-Adha.
Average petrol prices rose 59 percent from a year earlier to Rs402 per liter in May, while high-speed diesel prices increased 57 percent to Rs401.46 per liter, according to the report.
The government reduced fuel prices by Rs22 per liter on May 29, bringing them down to around Rs380 per liter for both petrol and diesel, though prices remained elevated for most of the month.
The report said diesel sales fell to 0.45 million tons, the lowest level ever recorded for any month of May, while petrol sales declined 12 percent from a year earlier.
Despite the weak monthly performance, cumulative petroleum sales in the first 11 months of fiscal year 2025-26 edged up 1 percent from a year earlier to 14.93 million tons.
Petroleum levy collections during the period stood at an estimated Rs1.39 trillion ($5.0 billion), against the government’s full-year target of Rs1.47 trillion ($5.3 billion).
