SINGAPORE: Pakistan’s fuel oil exports surged to a historic high in 2025, driven by rising domestic taxes and a growing shift by power producers toward cleaner and cheaper energy alternatives, industry sources reported.
Fresh shipping data from Kpler and LSEG shows Pakistan’s annual fuel oil exports have already exceeded 1.4 million tonnes (about 8.9 million barrels), marking a 16% increase over full-year 2024 exports. LSEG data places 2025 exports at 1.33 million tonnes so far, up from 1.11 million tonnes last year — the highest level ever recorded. Most cargoes were shipped to Southeast Asia and the Middle East.
The exported volumes were predominantly high-sulphur fuel oil (HSFO), contributing to an already oversupplied Asian marine fuel market and further depressing regional crack spreads.
“Pakistan primarily exports HSFO to Asia, which has seen excess supply after the summer season, pressuring cracks,” said Valerie Panopio, Vice President for Oil Commodity Markets at Rystad Energy.
Analysts say refiners increased export volumes through spot tenders after the government raised taxes on domestic fuel oil sales, making local consumption less attractive. At the same time, power producers are rapidly shifting toward coal, LNG, and solar, reducing furnace oil demand in the energy mix.
Pak-Arab Refinery led the export surge, while other major exporters included Cnergyico, Attock Refinery, National Refinery, and Pakistan Refinery.
Cnergyico, Pakistan’s largest refiner, exported around 247,000 tonnes of fuel oil in 2024–25, Vice Chairman Usama Qureshi said. He expects exports to grow by at least 50% this fiscal year due to increased processing of light-sweet crude, which boosts production of very low sulphur fuel oil (VLSFO). The company has also partnered with global trading firm Vitol to expand low-sulphur marine fuel supplies from Pakistani ports.
Industry outlook remains strongly export-oriented.
“The trend in furnace oil exports is only going to increase in 2026,” said Syed Nazir Abbas Zaidi, Secretary General of the Oil Companies Advisory Council. “Fuel oil is no longer viable for electricity generation and no longer profitable to sell domestically after the last budget,” he added.
By Reuters
