Sitara Petroleum expands retail footprint, scales logistics capacity

April 29, 2026: Sitara Petroleum Service Limited is rapidly expanding its footprint in Pakistan’s downstream petroleum sector, strengthening its position as a major fuel retail operator and logistics partner to oil marketing companies (OMCs), supported by a growing network of fuel stations and an expanding tanker fleet.

The company currently operates a network of 61 fuel stations across the country, including GO-branded outlets and Aramco-branded sites, while managing a fleet of around 320 oil tankers providing petroleum transportation services.

Sitara Petroleum plans to expand its retail footprint to over 100 fuel stations within the next two years, with 23 new outlets expected to be added during the current fiscal year alone, targeting high-growth corridors and improving nationwide accessibility.

Alongside retail expansion, the company is scaling its logistics operations, with plans to increase its tanker fleet to 370 vehicles by June 2027. This expansion is aimed at enhancing delivery capacity, improving turnaround times, and supporting higher fuel volumes across its network.

The planned terminal at Gatti is central to the company’s next phase of growth. The storage capacity of 30,000 metric tonnes will be initially used for hospitality and later to enter into the oil marketing domain. The site of storage terminal is situated at a strategic location, which is in close proximity of oil pipeline and at a place where there is increasing market demand and overall shortage of storage.

The company currently provides carriage services primarily to Gas & Oil Pakistan, positioning itself as a key logistics partner within the petroleum supply chain.

The dual expansion strategy — retail outlets and logistics infrastructure — is already translating into strong financial performance.

Sitara Petroleum reported a sharp increase in revenue to Rs121.9 billion in FY2025, up from Rs40.9 billion in FY2024, driven by improved fuel availability, higher sales volumes, and network expansion. Profit after tax rose to Rs3.25 billion, compared to Rs221 million a year earlier. In the first half of FY2026 alone, the company posted revenue of Rs72.6 billion and profit after tax of Rs2.71 billion, reflecting continued momentum.

The recovery in volumes follows normalization in fuel supply conditions, which had previously constrained throughput across retail outlets. Improved procurement dynamics and performance-linked dealer incentives have also contributed to margin expansion, supporting overall profitability.

Beyond fuel sales, Sitara’s retail stations are increasingly positioned as integrated service hubs, offering convenience retail, car care services, and ancillary facilities that enhance customer experience and generate additional revenue streams.

The company’s business model spans multiple dealership structures, allowing operational flexibility and capital efficiency while maintaining control over service quality and throughput.

Sitara Petroleum is also investing in operational optimization across its logistics network, aiming to improve fleet utilization and ensure timely delivery across a geographically expanding footprint.

While the company is currently in the process of raising capital through an initial public offering, the proceeds are primarily being directed toward expanding its fuel station network and logistics capacity — reinforcing its core business.

Industry analysts note that with rising fuel demand, expanding transport needs, and increasing competition among OMCs, logistics-backed retail operators like Sitara Petroleum are becoming increasingly important in ensuring supply chain efficiency and market reach.

As Pakistan’s energy demand continues to grow, the company’s integrated focus on fuel retail management and transportation services positions it to benefit from both volume expansion and operational scale within the downstream petroleum sector.