Pakistan Produces Only One-Third of Petrol Demand
In the first quarter of the fiscal year 2026-27, Pakistan’s domestic petrol production accounted for just about one-third of the total petrol sales nationwide, according to a recent Senate disclosure. Local refineries generated 7,035 tons of petrol daily, while the country sold approximately 21,583 tons each day from July to September 2026.
Petrol and Diesel Production vs Sales
The gap between local production and demand is not limited to petrol. High-speed diesel (HSD) production also lagged behind sales during this period, with 14,065 tons produced daily compared to 16,866 tons consumed. Punjab Province led in both petrol and diesel production but still faced considerable shortfalls: it produced 4,670 tons of petrol against 14,827 tons sold daily and 7,608 tons of diesel compared to 10,779 tons sold.
In Sindh, petrol production was 1,592 tons daily versus sales of 4,567 tons, though its diesel output of 4,419 tons exceeded its 3,662 tons in sales. Khyber Pakhtunkhwa’s sales figures stood at 2,127 tons for petrol and 2,355 tons for diesel daily, but production data was not disclosed. Balochistan showed high petrol production at 773 tons per day compared with only 62 tons sold, and diesel production at 2,038 tons compared with 70 tons sold daily.
Crude Imports and Production Inputs
Pakistani refineries use a mix of local and imported crude oil for refining petrol and diesel. During the same quarter, crude oil imports rose by 12% to 2.78 million tons, reflecting efforts to make up for limited domestic production capacity.
Why This Matters for Pakistan
The domestic fuel production shortfall has far-reaching implications for Pakistan’s energy security and economic stability. Heavy reliance on imports to fulfill the bulk of petrol demand exposes the country to global price fluctuations and forex pressure. For industries, transport, and consumers, this gap means higher costs and vulnerability to supply disruptions.
Bridging this production gap by enhancing refinery output or developing alternative energy sources is critical for reducing import dependence and supporting Pakistan’s long-term economic growth.
As one Senate official noted in the briefing, the data lays bare the immediate need for policy measures and investment to boost local fuel production and narrow the existing demand-supply deficit.
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