Pakistan’s refinery offtake falls 7% in May despite 22.5% rise in production

Pakistan’s refinery product offtake declined 7.0% year-on-year in May 2026 despite a 22.5% increase in production, as weaker demand for high-speed diesel (HSD) and furnace oil (FO) weighed on sales, according to industry data.

Overall refinery production rose to 1.01 million tonnes during the month, supported by higher output of diesel, petrol and furnace oil.

Diesel production increased 17.6% year-on-year to 492,000 tonnes, while petrol output rose 14.4% to 242,000 tonnes.

Furnace oil production increased 37.9% year-on-year to 224,000 tonnes.

The increase in production, combined with lower offtake, points to inventory build-up at refineries during the month.

Industry utilisation improved to 59.2% in May 2026, compared with 58.1% in April 2026 and 48.3% in May 2025.

Pakistan Refinery Limited (PRL) recorded the highest utilisation rate at 73.5%, followed by Attock Refinery Limited (ATRL) at 69.3% and National Refinery Limited (NRL) at 57.0%.

Cnergyico (CNERGY) posted the lowest utilisation rate at 22.4%.

Product-wise, HSD sales declined 19.1% year-on-year to 409,000 tonnes in May, reflecting lower procurement by oil marketing companies and pressure from smuggled diesel.

Industry estimates suggest around 5,000 tonnes of HSD are smuggled into Pakistan daily, compared with national demand of nearly 22,000 tonnes per day.

This means illicit supplies account for about 23% of total diesel consumption.

Motor spirit (MS) remained comparatively stable, with offtake increasing 4.3% year-on-year to 247,000 tonnes during the month.

Despite the slowdown in May, cumulative refinery offtake during the first 11 months of FY2026 rose 10.4% year-on-year to 9.9 million tonnes.

During the same period, MS offtake increased 10.8%, while HSD demand rose 17.1%.

Among refiners, ATRL recorded sales of 112,000 tonnes in May, down 16.6% year-on-year.

Its petrol sales increased 26.6% to 50,000 tonnes, while HSD and FO sales declined 12.9% and 78.5%, respectively.

ATRL’s market share fell to 12.1%, below its historical average of 13.7%.

PRL posted sales of 144,000 tonnes, up 3.4% year-on-year, supported by a 30.6% increase in furnace oil volumes.

NRL recorded the highest growth among major refiners, with sales rising 21.2% year-on-year to 135,000 tonnes due to higher petrol and furnace oil sales.

CNERGY’s sales declined 11.5% year-on-year to 152,000 tonnes, as petrol and diesel volumes fell 22.3% and 17.7%, respectively.

Industry throughput patterns remained mixed, with diesel accounting for 48.7% of total throughput.

Petrol made up 24.0% of throughput, while furnace oil accounted for 22.2%.

Industry data showed that refinery operations improved during May, but demand-side pressure from lower HSD and FO sales continued to affect the sector’s performance.