Oil Marketing Companies Expand Amid Government’s Electric Vehicle Push

KARACHI: Oil marketing companies (OMCs) are intensifying efforts to open new fuel retail outlets, a move that contrasts sharply with the Pakistani government’s recent auto policy aimed at promoting electric vehicle (EV) adoption. The Auto Policy 2026-31 sets an ambitious target for 30 percent of all new vehicles in Pakistan to be electric by 2030.

Despite the government’s focus on EVs, OMCs remain optimistic about the rising demand for petrol, driven largely by strong sales of petrol-powered two-wheelers and compact cars in the 660-1,000cc range. This optimism persists even amid uncertainties surrounding fuel prices, particularly in light of geopolitical tensions such as the US-Iran conflict.

The increasing petrol prices have further fueled demand for motorcycles, as many consumers find themselves reliant on personal vehicles due to an ineffective public transport system. This trend underscores the challenges faced by the government in balancing its EV ambitions with the current realities of consumer behavior and infrastructure.

In response to the evolving market, Pakistan State Oil (PSO) has made significant strides, completing the development of 37 new retail sites in the first quarter of FY27, expanding its nationwide network to 3,727 outlets—the largest in the country. Additionally, PSO has initiated the installation of EV chargers in cities like Faisalabad and Multan, enhancing its charging network to 16 locations.