Pakistan’s sale of High Octane Blending Component (HOBC) reached a record high of approximately 33,000 metric tons in February 2025, driven by significant price discounts from oil marketing companies (OMCs). This surge in demand for HOBC came as consumers opted for the higher-quality fuel over the relatively cheaper Motor Spirit (MS) petrol.

According to data from the Oil Companies Advisory Council (OCAC), reported by Optimus Capital Management (OCM), the sale of HOBC was around 15,000 metric tons in September 2024, and has steadily increased since then, culminating in February’s record numbers.

OMCs introduced attractive price reductions, creating a narrower price gap between HOBC and MS petrol. By March 4, 2025, HOBC (Euro5 Octane+) was priced at Rs260.35 per liter, while MS/petrol (Euro5 Premier) cost Rs255.63 per liter in Karachi, reducing the price difference to under Rs5 per liter. A year earlier, the price gap between the two products stood at around Rs18 per liter.

HOBC, typically used by luxury and imported cars, is known for its improved mileage and better engine performance compared to standard petrol. As the Oil and Gas Regulatory Authority (OGRA) does not regulate HOBC prices, oil companies that import the fuel set the price, resulting in varying prices across different petrol stations in a city.

While HOBC sales soared, the overall demand for petroleum products, including petrol and diesel, dropped by 18% month-on-month in February 2025. Sales fell to 1.14 million tons, down from 1.38 million tons in January 2025. This decline is attributed to rising fuel prices and fewer days in February compared to January, along with reduced reliance on furnace oil (FO) for power generation.

Petrol sales saw an 11% decline to 0.56 million tons, while high-speed diesel (HSD) sales plummeted 29% to 0.43 million tons. However, compared to February 2024, petroleum product demand improved by 2% year-on-year.

Despite the overall dip, certain factors like curbs on smuggled Iranian fuel, a boost in automobile sales, and higher demand for FO-based power generation contributed to the growth in petrol sales. On the other hand, HSD demand faced a 4% year-on-year decline in February, partly due to lower crop yields from reduced rainfall.

For the fiscal year 2024-2025, total petroleum product sales increased by 4% year-on-year, reaching 10.55 million tons. While petrol and HSD showed growth, furnace oil sales saw a decline.