Pakistan's refineries exported about 55% more fuel oil in April 2026 than a year earlier, as the government moves to cut furnace oil use amid an expected resumption of LNG supplies from Qatar for power generation, according to Oil Companies Advisory Council (OCAC) data.
Pakistan exported 151,520 metric tons of fuel oil in April 2026, up about 55% from 97,452 tons a year earlier.
Light sulfur fuel oil exports reached about 28,217 tons, compared with zero shipments in April 2025.
The export surge reflects surplus fuel oil as the government plans to reduce its use in power generation. The rise coincided with the resumption of LNG cargoes from Qatar, further easing reliance on costly furnace oil.
Why is Pakistan reducing fuel oil use?
The government has long discouraged the use of furnace oil in industry and in oil-fired power plants. Electricity from fuel oil costs far more than power from gas, coal, nuclear, and hydroelectric sources.
Power from furnace oil costs around PKR 45.3 ($0.16) per unit, according to NEPRA. RLNG costs PKR 13.7 per unit, coal PKR 14.25, and gas PKR 13.8.
How will Qatar's LNG cargoes help?
The government has secured one spot LNG cargo and three cargoes from Qatar under a contractual agreement. The supplies will help generate more electricity and reduce load shedding.
A Ministry of Energy official confirmed the arrangement on May 26. Pakistan typically imports about 9-10 LNG cargoes per month from Qatar under long-term contracts.
Pakistan has two LNG contracts with Qatar. The first is a 15-year deal ending in January 2031, with a Brent slope of 13.37%.
The second is a 10-year contract maturing in December 2032, with a Brent slope of 10.2%.
How did fuel oil exports perform over the fiscal year?
During July to March, refiners exported about 1.226 million metric tons of high-sulfur fuel oil. That marked an 11% jump from 1.105 million tons a year earlier.
Light sulfur fuel oil shipments rose 49.5% to 167,521 tons over the period.
Refineries may export about 130,000 tons of high-sulfur and 25,000 tons of light-sulfur fuel oil in May, as units hold ample stocks.
Domestic fuel oil consumption rose to 137,000 tons in April, from 84,000 tons a year earlier. Over the first 10 months of FY26, it rose 11% to 529,009 tons.
Zayan Babar Khan, an analyst at Arif Habib Ltd., said fuel oil sales grew on higher demand. He cited greater reliance on fuel oil power plants amid wartime RLNG disruptions.
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