The global energy landscape is undergoing a monumental shift as the “Age of Electricity” officially arrives. For decades, the fuel retail industry was defined by a simple “volume x margin” calculus centered on petroleum. However, a confluence of factors—including the decarbonization imperative, the rapid rise of electric vehicles (EVs), and shifting consumer behaviors—is forcing a total reimagining of the traditional service station. To survive, fuel retailers must pivot away from fossil fuels toward alternatives and away from the vehicle toward the customer.
Pakistan’s EV transition: more fuel outlets, a small but growing charging network
Pakistan’s fuel retailers are expanding while the country prepares for a larger electric-vehicle market. These developments are not necessarily contradictory. Petrol-powered motorcycles, cars and commercial vehicles remain on the road, while charging infrastructure is still being built. The real test is whether fuel retailers can adapt their sites as the vehicle mix changes.
On 7 November 2026, Prime Minister Shehbaz Sharif approved the final draft of the Auto Policy 2026–31. The draft is to be placed before the federal cabinet for consideration and approval. The proposed target is for electric vehicles to account for 30 per cent of new vehicle sales by 2030. This is a target for new sales, not a claim that 30 per cent of Pakistan’s existing vehicle fleet is already electric. The Ministry of Industries and Production separately lists the National New Energy Vehicle Policy 2025–30 among its approved policies.
| Company | Retail network update | Charging activity reported |
|---|---|---|
| Pakistan State Oil | 37 new retail sites in Q1 FY27; total network 3,727 outlets | Charging network expanded to 16 locations, including new chargers in Faisalabad and Multan |
| Wafi Energy Pakistan / Shell | 54 new Shell retail sites in the nine months to 30 September | Nine EV charging locations reported |
| Attock Petroleum | Five outlets commissioned and six underperforming sites phased out; network stood at 816 outlets on 30 September | Chargers operational at Dandiwal service areas on M-4 with Hubco Green; a heavy-duty charger installed at an Islamabad company-operated site with Huawei Technologies Pakistan and AE Power Energy, with expansion planned at 13 additional selected outlets |
The numbers show that retail expansion and electrification are taking place at the same time, but not at the same scale. PSO’s network of 3,727 outlets is a large existing footprint, while its 16 charging locations remain a small part of that network. Wafi Energy and Attock Petroleum are also adding chargers, but the reported figures do not establish that every new petrol station is EV-ready.
Why petrol demand is still strong
Pakistan’s vehicle transition is not happening overnight. Two-wheelers are especially important because they are a common form of personal transport for commuters, delivery workers and small businesses. Industry data reported for FY26 showed electric two-wheeler sales rising to 240,000 from 60,000 in FY25. At the same time, total two-wheeler assembly increased to 2.416 million units in FY26 from 1.692 million a year earlier.
An oil-industry executive estimated that 50–60 per cent of two-wheelers on the road still use petrol. This is an industry estimate, not a complete official census of the national fleet. It nevertheless illustrates why fuel retailers expect continued demand while electric models gain ground.
Public transport also affects the pace of change. Where buses and reliable urban transport options do not meet daily travel needs, households continue to depend on motorcycles and cars. A policy that promotes electric vehicles can change the fuel used by a vehicle, but it does not by itself solve congestion, long commutes or the shortage of convenient public transport.
Fuel stations could become multi-energy service sites
A petrol station does not have to remain a petrol-only business. Depending on its location, grid connection, available space and customer demand, a retail site could combine conventional fuel, fast charging, convenience retail, food, vehicle services and other energy facilities. The best model will differ between a motorway service area, an urban petrol station and a site serving commercial fleets.
However, installing a charger is not the same as operating a dependable charging service. A station needs a suitable electricity connection, enough grid capacity, equipment maintenance, clear pricing, safe parking and a process for handling faults. A charger that is installed but frequently unavailable does little to build consumer confidence.
Nor will every electric vehicle owner depend on a public petrol-station charger. Some drivers may charge at home, at workplaces, apartment facilities or shopping centres. Public fast-charging sites are particularly relevant to intercity travel, people without private parking and commercial vehicles that need to return to service quickly.
What the 2030 target will depend on
The 30 per cent new-vehicle target will require more than a policy announcement. Buyers need vehicles that fit their budgets and daily travel patterns, dependable after-sales support, replacement parts, battery safety and recycling arrangements, and charging that is available where they need it. Manufacturers and importers need clear technical standards, while electricity providers must plan for the extra load from charging.
Fuel retailers can contribute by making selected high-traffic sites suitable for charging and by sharing information about charger availability. But a national charging network should not be measured only by the number of chargers announced or installed. Useful indicators include how many are operational, their locations, charging speed, uptime, power capacity and the number of vehicles they actually serve.
What to watch next
- Whether the federal cabinet formally approves the Auto Policy 2026–31 and publishes its final implementation rules.
- How many of the announced EV charging locations are operational and publicly accessible.
- Whether charger coverage extends beyond a few major cities and selected motorway sites.
- How electric two-wheeler sales compare with total two-wheeler sales over several quarters.
- Whether public transport and electricity-grid improvements accompany the shift to electric vehicles.
Pakistan’s fuel retailers are not choosing between petrol and electricity in a single year. The existing fleet will keep requiring conventional fuel while the market gradually adds electric vehicles. The strongest operators are likely to be those that can serve both needs without treating a policy target as proof that the transition has already happened.
Policy document: Ministry of Industries and Production — approved policies, including the National New Energy Vehicle Policy 2025–30.
Electricity: The “New Oil” of the Global Economy
According to the International Energy Agency (IEA), electricity is poised to emerge as the “new oil” of the global energy system. Total electricity demand is accelerating across all scenarios, driven by advanced manufacturing, AI, and the mass electrification of transport. Global investment in clean technology reached $1.8 trillion in recent years, significantly outpacing fossil fuel investment. This transition is anchored in the fact that solar power is now the cheapest source of generation in many regions.
The Surge in Electric Vehicle Adoption
EV sales have gained significant traction, with some regions seeing sales outpace internal combustion engine (ICE) vehicles. The IEA reports that public charging points have doubled since 2022, surpassing 5 million globally. In 2024 alone, 1.3 million public chargers were added, a 30% increase over the previous year.
While home charging remains the most popular method for EV owners, public infrastructure is critical for mass adoption, particularly for those without private parking. Ultra-fast charging (150 kW and above) is also expanding rapidly, more than doubling in Europe since 2022. This technology, combined with next-generation batteries like CATL’s Shenxing, is bringing charging times closer to traditional refueling, with some platforms claiming to deliver 400 km of range in just five minutes.
Reimagining the Service Station as a Mobility Hub
Fuel retailers are no longer just selling gasoline; they are transforming their real estate into mobility and convenience hubs. Innovative operators are pursuing three primary onsite opportunities:
- Modernizing the Pump: Beyond EV charging, retailers are offering 2G biofuels and hydrogen, which are vital for heavy-duty long-haul transport.
- Transforming the C-Store: Non-fuel margins are becoming increasingly important. Retailers are moving toward hyperpersonalization using AI and big data to tailor offers to individual customers. Successful formats are allocating 40% to 50% of store space to fresh food-for-now and food-for-later selections.
- Capitalizing on Real Estate: Sites are being repurposed as services and logistics hubs. This includes hosting “dark kitchens” (commercial meal-prep facilities for delivery) and last-mile logistics hubs with lockers for parcel pickup.
The Role of E-Fuels in Hard-to-Abate Sectors
While electrification is the primary driver of the transition, certain sectors like shipping, aviation, and road haulage are difficult to power with batteries alone. E-fuels (synthetic fuels) offer a carbon-neutral alternative produced by combining green hydrogen with captured CO2. Although widespread commercial development of e-fuels is likely a decade away, they are essential for decarbonizing sectors without requiring the early scrapping of long-life equipment.
Economic Viability and Regional Leaders
The economic case for EVs is strengthening. In India, while the upfront cost of an EV remains 40% to 60% higher than ICE models, the Total Cost of Ownership (TCO) is lower over a five-year period due to significantly lower running and maintenance costs.
Norway remains the global leader in EV adoption, with 98% of new cars registered in early 2025 being electric. This success was driven by long-term policy consistency, heavy investment in infrastructure, and significant consumer tax exemptions. Meanwhile, emerging markets like China now hold 65% of the global public charging stock, underscoring the shift in energy leadership.
Corporate Strategies: Diversification and Resilience
Major energy companies are taking divergent paths to address these shifts. Shell is pursuing a “dual-track” strategy, maintaining disciplined capital expenditure in oil and gas while aiming for net-zero emissions by 2050 through low-carbon technology investments. Conversely, BP has recently pivoted back toward traditional fossil fuels to ensure financial sustainability, despite earlier green commitments.
Furthermore, oil and gas majors are moving into direct electricity retail and home energy services. Imagine a future where your oil provider also manages your home’s solar panels, energy storage battery, and smart EV charger. This vertical integration allows companies to build “sticky” relationships with consumers that are no longer dependent on the sale of a commodity like gasoline.
Conclusion: An Urgent Agenda for Action
The transition to a low-carbon future is no longer a distant aspiration; it is an urgent business imperative. Fuel retailers must derive maximum value from their core business while aggressively expanding into new value pools like EV ventures, last-mile logistics, and digital loyalty programs. Those that embrace customer-centricity and digital transformation swiftly will be the ones to thrive in the new energy era.