Pakistan’s fuel oil exports reached a record high this year as higher domestic taxes and a shift by power plants toward cleaner alternatives reduced local demand, industry sources said.
Shipping data showed exports exceeding 1.4 million metric tons so far in 2025, more than 16% above last year’s full-year total, with most cargoes sent to Southeast Asia and the Middle East.
Traders and analysts noted that the increase, driven largely by high-sulphur fuel oil, added to marine fuel supply in Asia and further pressured prices in an already well-supplied market.
Refiners boosted sales through tenders after the government raised taxes on domestic fuel oil consumption, while some power producers gravitated toward coal and solar.
Pak-Arab Refinery was identified as the leading exporter, followed by Cnergyico, Attock Refinery, National Refinery and Pakistan Refinery.
Cnergyico reported exporting about 247,000 tons of fuel oil in fiscal year 2024–25 and aims to increase shipments further.
Read More: Construction Work Begins on Reko Diq Gold-Copper Project
The company said higher use of light-sweet crude expanded its output of very low sulphur fuel oil and enabled greater supply through its partnership with global trader Vitol.
Analysts said rising exports helped refineries avoid operational constraints linked to inventory limits seen in previous years.
Industry sources expect shipments to remain steady or rise in the coming year.
Syed Nazir Abbas Zaidi, secretary general of Pakistan’s Oil Companies Advisory Council, said furnace oil exports are expected to grow in 2026.
He added that fuel oil is no longer viable for power generation or profitable in the domestic market after recent budget changes.
