Pakistan refinery output surges 58% in October

Pakistan’s oil refineries posted strong growth in October, with average capacity utilization rising to 62.3% from 50.4% a year earlier, according to data from the Oil Companies Advisory Council (OCAC).

Pak-Arab Refinery Co. (PARCO) recorded the highest utilization rate at 105.9% in October, compared with 64% in the same month last year, OCAC data showed. Pakistan Refinery operated at 76%, Attock Refinery at 72.8%, National Refinery at 40.8%, and Cnergyico Ltd. at 16.1%. A year earlier, their respective utilization rates stood at 67.8%, 65.7%, 32.1%, and 22.5%.

Overall refinery production rose 58.3% year-over-year to 924,000 metric tons, driven by higher output of key fuels, according to a report by Arif Habib Ltd. released Nov. 4. Motor gasoline production increased 69.3% to 229,000 tons, diesel jumped 74.7% to 481,000 tons, and fuel oil rose 23.2% to 183,000 tons.

The report attributed the surge partly to a low base from the same period last year.

Industrywide throughput data showed fuel oil’s share of refinery production declining to 20% in October, while motor gasoline and diesel accounted for 24.7% and 52.1%, respectively, compared with historical averages.

Total refinery sales, including motor gasoline, diesel, and fuel oil, climbed 23.5% to 1.019 million tons in October from 825,000 tons a year earlier, OCAC data showed.

Zayan Babar Khan, an investment analyst at Karachi-based Arif Habib Ltd., said refinery sales benefited from tighter government enforcement against fuel smuggling from Iran and stronger local demand, particularly from the auto sector.

Sales of motor gasoline rose 25% to 216,000 tons, diesel increased 22% to 540,000 tons, and fuel oil gained 21%, according to the data.

“Diesel sales are expected to rise further as the harvesting season begins, increasing farm activity,” Khan said.

Industry officials said local refineries could export up to 90% of the fuel oil they produce this fiscal year, following the federal government’s imposition of a petroleum development levy of PKR 82,077 per metric ton ($293) and a carbon tax of PKR 2,665 per ton in the 2025-26 budget to discourage domestic use of fuel oil.

Total refinery sales during the first four months of the fiscal year, which runs from July to June, reached 3.344 million tons, up from 3.138 million tons in the same period last year, according to OCAC.