KARACHI: Pakistan’s refinery product offtake declined 8.1% year-on-year (YoY) in June 2026, driven mainly by a sharp drop in demand for high-speed diesel (HSD) and furnace oil (FO), while refinery production continued to increase, resulting in higher inventory levels across the sector.
According to industry data, HSD sales fell 16% YoY to 423,000 tonnes, reflecting lower procurement by oil marketing companies (OMCs) and a resurgence in cross-border fuel smuggling, encouraged by elevated domestic diesel prices. The average ex-refinery price of HSD stood at Rs347 per litre during June, representing a 37.1% increase compared to the same period last year.
In contrast, motor spirit (MS) maintained strong momentum, with sales rising 13.3% YoY to 244,000 tonnes, highlighting sustained consumer demand.
Despite the monthly slowdown, total refinery product offtake for FY2026 reached 10.9 million tonnes, up 8.6% from the previous fiscal year. The annual increase was supported by healthy demand for both petrol and diesel, with MS sales increasing 11% and HSD sales rising 13.6%.
Refinery Performance
Attock Refinery Limited (ATRL) posted a 6% YoY increase in sales to 101,000 tonnes, supported by improved crude oil availability and fewer supply disruptions. Petrol sales surged 36.8% to 45,000 tonnes, while HSD sales rose 8.6%. However, the refinery’s market share declined to 11.5%, compared with its historical average of 13.6%.
Pakistan Refinery Limited (PRL) recorded a 22.3% YoY decline in sales to 100,000 tonnes, primarily due to a 10.3% drop in HSD volumes and a steep 90% decline in furnace oil sales.
National Refinery Limited (NRL) reported sales of 105,000 tonnes, down 12.4% from a year earlier. The decline was mainly attributed to lower sales of petrol and diesel, which fell 7.7% and 23.5%, respectively.
In contrast, Cnergyico PK Limited delivered the strongest performance among local refiners, with sales increasing 12.4% YoY to 161,000 tonnes. The growth was driven by a 66.9% jump in petrol sales and a 23.7% increase in HSD volumes.
Production Rises Despite Softer Demand
While domestic demand weakened, overall refinery production increased 5.8% YoY to 927,000 tonnes in June. Petrol production rose 8.1% to 492,000 tonnes, while furnace oil output increased 3.1% to 191,000 tonnes. The mismatch between rising production and weaker diesel demand contributed to an accumulation of refinery inventories.
Refinery Utilisation
The refining industry’s average utilisation rate stood at 54.2% in June 2026, compared with 59.2% in May 2026 and 51.3% in June 2025.
Among individual refiners, Pakistan Refinery Limited (PRL) recorded the highest utilisation rate at 71.6%, followed by Attock Refinery Limited (ATRL) at 56.3%. National Refinery Limited (NRL) operated at 34.2%, while Cnergyico PK Limited posted the lowest utilisation rate at 28.8%.
The June performance reflects mixed trends across Pakistan’s refining sector, with resilient petrol demand offset by weaker diesel consumption, rising inventories, and lower operational efficiency across much of the industry.
