Pakistan’s fuel oil exports have reached their highest level on record this year, with refiners expected to ship steady-to-higher volumes in 2026 as domestic consumption continues to fall, industry sources said. The surge has added to an already well-supplied Asian market, contributing to weaker fuel oil prices.
Shipping data from Kpler shows Pakistan’s fuel oil exports surpassing 1.4 million metric tonnes so far this year — roughly 8.9 million barrels — an increase of more than 16% compared to full-year 2024. LSEG data similarly records exports at 1.33 million tonnes, up from 1.11 million tonnes last year. Most cargoes moved to Southeast Asia and the Middle East.
The exported volumes largely comprise high-sulphur fuel oil (HSFO), used mainly as marine fuel and, in some cases, as refinery feedstock. “Pakistan primarily exports HSFO to Asia, which has seen excess supply post-summer, depressing cracks across the region,” said Valerie Panopio, vice president for oil commodity markets at Rystad Energy.
Refiners accelerated exports after the government raised domestic taxes on fuel oil consumption, while power producers continued shifting to alternatives such as coal and solar. Pak-Arab Refinery led export volumes, with Cnergyico, Attock Refinery, National Refinery and Pakistan Refinery also among the major sellers.
Cnergyico, the country’s largest refiner, exported about 247,000 tonnes of fuel oil in FY24–25. Vice-Chairman Usama Qureshi said the company expects export growth of at least 50% this fiscal year, supported by greater use of light sweet crude and increased production of very low sulphur fuel oil (VLSFO). The refiner has partnered with Vitol to expand low-sulphur marine fuel supplies from Pakistan’s ports.
Industry analysts noted that higher exports have helped refiners avoid operating constraints linked to storage limitations. “The increase in fuel oil exports in the past years has ensured refinery runs are not constrained by inventory limits,” said Xin Shuai Huang, oil market analyst at FGE.
Looking ahead, exports are expected to remain elevated. “The trend in furnace oil exports is only going to increase going forward in 2026,” said Syed Nazir Abbas Zaidi, secretary general of the Oil Companies Advisory Council. He added that fuel oil has become unviable for power generation and unprofitable in the domestic market following recent budget changes.
Pakistan became a net exporter of fuel oil in 2023, marking a structural shift in the sector driven by changing domestic energy use and evolving refinery economics.
