Pakistan’s OMC sector posts Rs4.42tr revenue in FY25 as volumes rise but prices soften: report 

Pakistan’s oil marketing companies (OMCs) generated Rs4,416 billion in gross revenue during FY25, a marginal decline from Rs4,438 billion in FY24 due to lower average petroleum product prices driven by a softer global crude market, according to a new Pakistan Credit Rating Agency (Pacra) study.

Despite the slight revenue dip, the sector posted 9.5% volumetric growth, supported by higher imports and improved refinery throughput. Pakistan’s total POL consumption—comprising local production and imports—rose to 18.5 million metric tonnes (MT), up from 16.9m MT in FY24 and 17.2m MT in FY23.

Local refinery output increased modestly to 10.5m MT, compared to 10.1m MT a year earlier, while imports climbed to 8m MT, up from 6.8m MT in FY24. Pacra said the combination of incremental refinery activity and higher import volumes drove the overall upward trend.

The sector also saw structural changes, with new OMC licences pushing the number of operators to 48, up from 39 last year. Although Shell and Total exited Pakistan, major global players moved in: Aramco opened its first fuel station after acquiring a 40% stake in GO Petroleum, while Gunvor Group and Wafi Energy acquired Total PARCO and Shell’s Pakistan operations, respectively.

Pacra noted that these acquisitions reflect renewed international interest in Pakistan’s downstream sector and signal “a better economic outlook in the near future”.

Imports continued to play a significant role, constituting 43% of POL supply in FY25 versus 40% in the previous year. The share of petroleum products and crude in Pakistan’s overall import bill fell to 19%, compared to 22% in FY24 and 22.8% in FY23, largely due to lower global crude prices.

The transport sector remained the largest consumer of POL products. However, Pacra highlighted a gradual market shift as Pakistan increasingly adopts hybrid and electric vehicles, including in the two-wheeler segment. The entry of Chinese automakers is expected to accelerate this transition, potentially reducing long-term fuel demand from the transport segment.

OMCs and their dealer networks may need to adjust by incorporating EV charging infrastructure into their operations, the report suggested.

Pacra further noted that POL demand from the power sector is expected to remain subdued, driven by a shift to cheaper fuels and expanding solar generation capacity feeding into the national grid.