While the Pakistani government pushes an agenda to electrify 30 percent of the nation’s vehicle fleet by 2030, the country’s oil marketing companies (OMCs) are moving to expand their physical retail footprints, betting that the hum of internal combustion engines will dominate the nation’s highways for years to come.
The latest data, as reported by Dawn on November 8, 2026, reveals a disconnect between state policy and private sector capital allocation. Pakistan State Oil (PSO), the country’s largest retailer, completed 37 new sites in the first quarter of fiscal year 2027 alone, bringing its total network to 3,727 outlets.
Meanwhile, Wafi Energy Pakistan Ltd added 54 new Shell-branded sites in the first nine months of the year. For these companies, the business case for petrol remains strong, even as the Auto Policy 2026-31 signals a shift toward electric mobility.
Infrastructure Expansion Amid Policy Friction
The industry’s expansion strategy is rooted in an assessment of the local market. With an estimated five million cars, 30m motorcycles, and 10m rickshaws currently on the road, the sheer volume of petrol-dependent hardware is staggering. Because there is no national mandate to scrap aging, inefficient vehicles, the market for liquid fuel remains resilient.
An oil industry executive said that the government’s push for charging infrastructure at every fuel pump ignores global realities. “Pumps do not offer this facility worldwide, as electric bike and car owners charge their vehicles at their apartments, houses, and shopping malls, but the government continues to pressurise fuel pump owners to install chargers,” the executive noted.
This friction highlights a deeper logistical hurdle. While EV adoption is gaining traction—with sales of electric two-wheelers jumping from 60,000 in FY25 to 240,000 in FY26—the majority of the country’s massive motorcycle fleet still relies on petrol. With inconsistent public transport, the working class relies on motorcycles for mobility, keeping petrol demand high despite government targets.
Attock Petroleum Ltd Optimizes Network and Installs Chargers
The OMCs are not ignoring the future entirely, but they are treating electric infrastructure as a secondary bolt-on rather than a core business transformation. Attock Petroleum Ltd (APL), for instance, is currently undergoing a network optimization exercise. As of September 30, 2026, the company operated 816 outlets, having phased out six underperforming sites while commissioning five new ones.
APL’s approach to electrification is collaborative, relying on strategic partnerships to mitigate risk. The company has installed heavy-duty chargers in Islamabad in partnership with Huawei Technologies Pakistan and AE Power Energy.
Similarly, it has operationalized charging points at Dandiwal Service Areas on the M-4 Motorway alongside Hubco Green. These installations are highly targeted, focusing on high-traffic transit corridors rather than the dense urban centers where home charging is more viable.
The government’s decision to issue licenses to 50 OMCs has increased competition. With 48 companies now active, the scramble for prime real estate on new highways and bypasses is intense. For these firms, a new pump is a long-term asset that guarantees revenue for decades, while a public EV charger is, at present, a speculative investment with uncertain returns.
Macroeconomic Realities of the Fuel Market
The resilience of petrol demand is compounded by the country’s economic volatility. The ongoing uncertainty surrounding fuel prices, exacerbated by geopolitical tensions like the US-Iran war, has historically led to a surge in demand for motorcycles as consumers downsize to more fuel-efficient options. This trend keeps the pump business profitable even when the macro environment turns hostile.
Data from the Large Scale Manufacturing (LSM) sector shows this dependency. Total bike assembly for July-August FY27 reached 442,179 units, up from 321,788 in the same period a year prior. Car sales for the first quarter of FY27 also climbed to 41,872 units. While SUV and pickup sales experienced a decline, the overall trend points to a nation that is still buying, driving, and refueling combustion-engine vehicles.
