Pakistani Refineries Benefit as Iran Smuggled Fuel Supply Shrinks in 10 Months

Pakistan’s refinery sector posted strong growth in April 2026, as tighter controls on smuggled Iranian fuel and disruptions in natural gas supplies pushed up domestic refining activity.

Total refinery upliftment rose 12.7 percent year-on-year (YoY) to 954,000 tons in April.

According to Arif Habib Limited, this was driven mainly by higher demand for High-Speed Diesel (HSD) and Furnace Oil (FO).

Industry performance was supported by increased reliance on local fuel production amid import concerns and RLNG shortages affecting power generation.

HSD sales increased 11.3 percent to 442,000 tons as Oil Marketing Companies (OMCs) boosted procurement due to supply uncertainty and higher refinery utilization. FO sales surged 26 percent to 235,000 tons.

In contrast, Motor Spirit (petrol) sales declined slightly by 1.7 percent (YoY).

Refinery output also strengthened, rising 10.7 percent to 993,000 tons during the month. Overall capacity utilization improved to 58.1 percent compared to 52.5 percent in the same period last year. HSD accounted for more than half of total production at 50.5 percent, as refiners responded to stronger demand and expectations of price adjustments.

Among individual refiners, National Refinery Limited (NRL) recorded the highest growth, with sales jumping 78 percent to 143,000 tons, supported by gains across all major product categories.

Attock Refinery Limited (ARL) increased sales by 32.7 percent to 153,000 tons, despite earlier operational disruptions caused by road closures and a temporary shutdown of its main distillation unit before resuming operations in early May.

CNERGY posted a 29.9 percent increase to 146,000 tons, while Pakistan Refinery Limited (PRL) saw sales rise 18.1 percent to 132,000 tons.

For the first ten months of FY2026, total refinery upliftment reached 9.0 million tons, a 12.6 percent (YoY) increase.