PSO dominates Pakistan’s oil sector amid industry consolidation

September 15, 2025 (MLN): Pakistan State Oil (PSX: PSO) lead the country’s oil marketing sector, holding the largest market share in terms of volume at an impressive 41% and operating the most retail outlets, representing 26% of the market.

The company’s dominance extends to premium fuels as well, where it commands a 30% share in Hi-Octane and other premium fuel sales, according to an industry overview by Mountain Ventures for September 2025.

PSO is also spearheading the industry’s transition toward future energy solutions, having installed the highest number of EV charging stations as of mid-2024.

SOURCE: An industry overview by Mountain Ventures

Pakistan’s oil marketing sector as a whole is ripe with positive developments, with the top ten companies in the industry commanding a significant market share, controlling 94% of the total volumes and 74% of all retail outlets.

 The industry’s foundation relies on a mix of local and imported resources, with 9.3m metric tons of refined products coming from imported crude oil, 2.80m metric tons from local crude, and an additional 7.8m metric tons imported directly.

These resources are channeled to 42 active Oil Marketing Companies, which in turn supply a vast network of 12,135 retail outlets across the country.

Despite this consolidation, the sector is not without challenges. New OMCs have invested in storage capacity but face hurdles due to limited strategy, execution, and financial backing.

Regulated margins, which have not been revised for almost two years, continue to pressure profitability. Aggressive discounting and “cross-dumping” are squeezing smaller players out of the market, while fuel smuggling and adulteration have a disproportionately negative impact on these weaker firms.

Beyond PSO, the competitive landscape is defined by several other significant players. Gas and Oil Pakistan Ltd (GO-Aramco) holds the second-largest volume share at 13%, followed by Parco-Gunvor-Total with 11%, Attock with 9%, and Wafi-Shell with 8%.

These companies, along with others like Hascol, BE-Caltex, Taj, and Cnergyico, contribute to the dynamic market structure. The report also highlights impressive individual performances, with Taj Gasoline standing out for having the highest daily sales per outlet.

Overall, the data points to an industry that is both consolidating and adapting to new market dynamics, with PSO maintaining a dominant position at the center of this evolving landscape.

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