KARACHI: Despite an increase of Rs55 per litre and the ongoing Middle East war, sales of diesel and petrol rose by 13 per cent and 8pc month-on-month and 21pc and 16pc year-on-year to 590,000 tonnes and 670,000 tonnes, respectively, in March.

Before the announcement of a rise in diesel and petrol prices on March 6 and reports of a severe shortage in the future, people flocked to retail outlets to top up their vehicle’s fuel tanks in greater numbers, thereby also increasing inventory gains for petroleum dealers and oil marketing companies (OMCs).

However, total oil sales, including furnace oil (FO), reached 1.44 million tonnes in March, up by 19pc year-on-year and 13pc month-on-month.

Increase in sales of two-, three- and four-wheelers is also driving the demand for petrol mainly.

Sales of cars, sports utility vehicles, pickups, and vans during 8MFY26 reached 128,498 units, a 43pc increase year-on-year from 89,770 units in 8MFY25, followed by a 31pc year-on-year rise in two- and three-wheelers sales to 1.3 million units.

Myesha Sohail of Topline Securities noted that the year-on-year increase in oil products indicates strengthening economic activity, reduced inflation, and improved control over smuggling. Notably, sales remained robust despite higher petroleum prices caused by the US-Iran conflict.

The MoM increase is mainly due to a low base in February caused by fewer working days, she said.

The overall oil sales for 9MFY26 were 12.4m tonnes, reflecting a 5pc YoY increase compared to 11.77m tonnes in 9MFY25.

Total diesel and petrol sales during 9MFY26 stood at 5.349m tonnes and 5.796m tonnes, up 7pc and 5pc YoY, respectively.

FO sales in March reached 88,000 tonnes, showing a 98pc MoM increase and a 62pc YoY rise, possibly due to a shift towards FO as a readily available alternative amid rising prices and limited fuel source availability.

However, FO sales during 9MFY26 declined by 23pc, amounting to 392,000 tonnes, compared to the same period last fiscal.

In March, petrol prices surged by 21pc over February, while diesel prices rose by 19pc.

Myesha said that the government has set a Petroleum Development Levy (PDL) collection target of Rs1.47 trillion for FY26 of which Rs1.13tr (77pc) had already been collected in 9MFY26.

Oil sales may decline in April 2026, as elevated petroleum prices are likely to dampen demand, she said, adding that the government may increase fuel prices, given that the Price Differential Claim (PDC) has risen to Rs96/litre for petrol and Rs204/litre for diesel.

Published in Dawn, April 3rd, 2026