Key Points
- Petroleum exports reach $1.05bn in FY26
- Refineries account for 3.5pc of merchandise exports
- Furnace oil drives export growth amid weak demand
ISLAMABAD: Pakistan’s oil refining industry crossed the $1 billion mark in petroleum exports for the first time during the financial year ended June 30.
Industry data showed refineries exported petroleum products worth around $1.05 billion in FY26, equivalent to about 3.5 per cent of Pakistan’s total merchandise exports of $30.1 billion.
The milestone was driven largely by furnace oil exports as domestic consumption weakened amid the power sector’s shift towards hydel production and alternative fuels.
Pakistan’s furnace oil export
Pakistan exported more than 1.6 million tonnes of furnace oil during the year, including about 1.4 million tonnes of high-sulphur furnace oil. The value of furnace oil exports alone exceeded $1 billion.
Overall petroleum exports increased 10pc to around two million tonnes in FY26, with fuel oil exports rising 21 per cent to 1.74 million tonnes, according to data compiled by Arif Habib Limited.
The new sources of foreign exchange earnings are expected to reinforce Pakistan’s efforts to reduce its dependence on imported refined petroleum products and strengthen domestic refining capacity.
The government has been reviving a long-delayed refining policy aimed at attracting about $6bn in investment for refinery upgrades and expansion.
Recent regulatory approvals also indicate that refineries are continuing to use overseas markets to manage surplus furnace oil stocks.
On Wednesday, the Oil and Gas Regulatory Authority allowed Cnergyico, Pakistan Refinery Limited and Pak-Arab Refinery Company to export a combined 135,000 tonnes of furnace oil, subject to maintaining strategic reserves for the power sector.
Industry officials say refinery upgrades, improved fuel quality and expanded marine-fuel exports could provide further opportunities to earn foreign exchange and reduce pressure on Pakistan’s energy import bill.
