Pakistan’s oil marketing sector is heading towards forced exits unless all issues are addressed soon, Dubai-based advisory firm Mountain Ventures said in a report.
The country’s oil sector now mirrors the failures seen earlier in the US airline industry, where excessive fragmentation resulted in collapsing margins, underinvestment, repeated bankruptcies and forced mergers.
According to the report, consolidation in the oil marketing sector is unavoidable. The key risk is whether it occurs early and in an orderly fashion, or later through financial stress, company exits and market disruption.
Pakistan currently has 44 licensed oil marketing companies, but market activity is heavily concentrated. Just three OMCs account for 60 percent of total sales volumes, the top ten control 95 percent, and the top twenty account for 98.5 percent.
The sector recorded strong volume growth in 2025, with combined sales of gasoline, gasoil, and high-octane increasing by around 10 percent YoY to 15.4 million metric tons. But higher volumes failed to translate into improved profits.
Regardless, the entry of global fuel brands like Aramco, Gunvor and Wafi Energy in Pakistan is expected to reshape competition because fuel prices remain regulated here. These companies are likely to compete more and change the game.
The report concludes that future outcomes will depend less on demand growth and more on scale, balance-sheet strength, and execution.
Deregulation is the answer, l, it’s years since GoP is working and never ending working on PSO is the bench mark for prices adjustments….
Don,t spread panic. Seems you are YOUTHIA.
Small weak companies may disappear over time. That’s normal business, not a crisis.
Nice looking report but mediocre analysis. The author is a former executive known for his sharp practices at an OMC run by a dicey character. There are questions of integrity around both him and his former employer.
The government is deliberately creating conditions for the exit of foreign/multinational oil companies so that local mafia can take control of this business. You know very well which local mafia is grabbing all business opportunities in the country. This holds true also for the pharmaceutical industry and other businesses
Please name the local mafia.
Yeah sure…and then wait for the black Vigo to pay a visit 🙄
You must not belings to Pakistan this is why you are asking
It’s baseless to blame the government. Actually these companies failed to maintain the quality and quantity standards under prevailing conditions in country and monopoly of these companies. But now they have to compete with the companies like ARAMCO etc. who are providing exact quantity and good quality as confirmed by the customers.
Everyone knows mafias of Pakistan….
Deliberately entering in this business…
Nothing & no soft heart for public of pakistan.
Our corrupt powerful Military establishment is real mafia that is destroying Pakistan along with family political crooks who are in power from centuries