KARACHI: Pakistan State Oil (PSO) announced on Friday that it successfully maintained uninterrupted fuel supplies since the onset of the Strait of Hormuz crisis. Additionally, the company reported a 20.5 percent increase in gross profit from its non-liquefied natural gas (LNG) operations for fiscal year 2026.
Maritime traffic through the strait—a critical conduit for Gulf oil and gas exports—plummeted following US and Israeli strikes on Iran on February 28, reducing tanker activity to near zero. According to the International Energy Agency, Pakistan, India, and Bangladesh collectively sourced nearly two-thirds of their LNG imports via this waterway in 2025.
As a nation heavily dependent on imported fuel, Pakistan remains highly vulnerable to global supply and price fluctuations. PSO’s financial results encompass the fiscal year ending June 30, which includes the initial four months of the regional conflict.
“Pakistan’s fuel supply was not interrupted for a single day, and we achieved this safely,” stated Jawwad Ahmed Cheema, Chief Executive of PSO.
The company reported that gross profit, excluding LNG, climbed to $296 million, up from $245 million in the previous year. Total gross profit also saw an increase, reaching $361 million compared to $349 million. Standalone profit after tax stood at $54.4 million, equating to approximately 12 cents per share. Meanwhile, PSO’s share of group profit after tax increased to $92 million, supported by a gross revenue of $12.3 billion.
PSO noted that a reduction in trade receivables—which declined to $1.5 billion from $1.58 billion—coupled with lower interest rates, resulted in a 24 percent decrease in finance costs. The company also highlighted its ongoing collaboration with the government to find a sustainable solution to the circular debt issue, a persistent cycle of unpaid bills within Pakistan’s energy sector.
At the peak of the supply disruption, PSO attributed its ability to service all market segments to its strategic advance import planning and the country’s largest storage capacity, which stands at 1.23 million metric tons.
PSO commands a 42.7 percent market share in white oil products, including petrol and diesel, and dominates the aviation fuel sector with a 99 percent share. The company reported that its aviation fuel operations generated over $360 million in foreign exchange earnings during the fiscal year.
While traffic through the Strait of Hormuz remains significantly below the pre-conflict average of approximately 125 daily crossings, a US official informed Reuters that around 60 commercial vessels transited the waterway on Wednesday. This movement represented the highest daily volume of crude oil transported through the strait since early July.