ISLAMABAD: Pakistan’s oil refining sector played a pivotal role in averting a potential fuel supply crisis during peak diesel demand months, as local refineries ramped up production and ensured uninterrupted availability across the country, according to research by Arif Habib Limited.
Refinery throughput increased 13 percent year-on-year to 972,000 tons in March 2026, compared to 860,000 tons in the same period last year, driven by higher output of key transport fuels.
High-speed diesel (HSD) and motor spirit (MS) led the increase, with volumes rising 26.8 percent YoY to 491,000 tons and 25.1 percent YoY to 239,000 tons, respectively.
The sustained rise in production during a period of elevated demand helped maintain supply stability and avoid disruptions seen in other markets.
Industry participants noted that local refineries maintained higher utilisation levels and responded proactively to increased demand, particularly for diesel, which is critical for transport, agriculture, and industrial activity.
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The contribution was industry-wide. Major refiners including Cnergyico, PARCO, Pakistan Refinery Limited, National Refinery Limited and Attock Refinery Limited collectively increased throughput, ensuring that supply chains remained intact despite global volatility.
Furnace oil (FO) sales declined 21.1 percent YoY to 190,000 tons, reflecting a structural shift in demand. However, within this segment, Cnergyico continued to produce VLSFO (Very Low Sulphur Fuel Oil) for marine bunkering, supplying fuel to ships and selling a significant portion to bunker operators.
On a cumulative basis, refinery throughput in 9MFY26 reached 8.1 million tons, marking a 12.6 percent YoY increase, with MS and HSD volumes rising 13.3 percent and 23.1 percent, respectively.
Copyright Business Recorder, 2026
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