Pakistan’s fuel oil exports reached a record high in 2025,driven by⁤ increased domestic taxes and ‌a shift by power plants towards cleaner energy sources. ‌ The trend is expected to⁢ continue into 2026, according to industry experts.

record Exports and Growth Projections

Cnergyico, Pakistan’s largest oil refiner,​ exported approximately 247,000 tonnes of fuel oil in 2024-25. ⁤Usama Qureshi,the company’s⁣ vice-chairman,anticipates at least⁣ a ⁣50% growth in exports for​ the current fiscal year. This increase is attributed to the greater ‍utilization of light-sweet⁢ crude, which has boosted the production of very low sulphur fuel oil.

Cnergyico has established a partnership ⁢with global trading house Vitol to expand the supply‍ of low-sulphur marine ‌fuel from Pakistani ports. This collaboration aims to capitalize on⁢ the increasing ‌demand for cleaner fuels in ​the maritime industry.

Domestic Factors Driving Exports

Syed Nazir Abbas Zaidi,secretary general of Pakistan’s ‌oil companies advisory council,predicts a continued increase in ⁢furnace oil exports in 2026. ​He explains that fuel oil is ⁤no longer‌ a viable option for electricity generation⁢ and has become unprofitable to sell domestically following changes⁣ implemented in the latest⁣ budget. This shift​ in domestic viability‍ is a key driver of ⁤the export surge.

The recent⁢ budget adjustments have made domestic sales of fuel oil less attractive, pushing ⁢refineries to seek export markets. This aligns with a broader global ⁢trend towards cleaner energy sources and reduced reliance on heavy fuel oil for power generation.

Key Players⁣ in Pakistan’s Refining Industry

Pakistan’s refining sector ‍comprises several key ⁣players:

• cnergyico: ‌The country’s largest oil ‌refiner, leading the ‌export drive.
• National Refinery: A critically important contributor to the refining ‍capacity.
• Pakistan ⁣Refinery: Another key player in⁣ the domestic​ refining landscape.

Fuel Oil ⁤Exports:⁤ Historical Context & future Outlook

While specific​ historical data on Pakistan’s fuel oil exports prior to 2025 wasn’t provided, the current surge indicates a significant departure from previous ⁣trends. the combination of domestic ⁣policy changes and global ‌market dynamics suggests that this trend is likely to persist, potentially