Oil Demand Rises Despite Furnace Oil Decline

Oil consumption in Pakistan climbed in August, with total sales reaching 1.3 million tonnes, according to Topline Securities. The figure marked a 7% rise compared to the same month last year and a 6% increase over July.

In the first two months of the fiscal year (July–August FY26), oil sales reached 2.523m tonnes, representing a 5% annual increase. Petrol demand was the main driver, rising 8% year-on-year to 675,000 tonnes in August and 10% higher than July.

For July–August, cumulative petrol sales stood at 1.288m tonnes, up from 1.216m tonnes in the previous year. Analysts linked the increase to greater demand from motorcycles, rickshaws, and passenger cars.

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High-speed diesel (HSD) also registered strong growth. August sales were up 14% YoY to 522,000 tonnes, while July–August volumes rose 12% to 1.031m tonnes compared with 921,000 tonnes last year.

In contrast, furnace oil (FO) continued to shrink sharply. August sales fell 71% YoY to 19,000 tonnes, while July–August consumption was down 76% to 34,000 tonnes.

The trend reflects Pakistan’s shift away from FO-based power generation toward cleaner, cheaper fuels such as natural gas and coal.