ISLAMABAD: Pakistan potentially saved around $120 million in foreign exchange in July after recording no imports of high-speed diesel (HSD), as domestic refineries produced more than 500,000 tonnes to meet rising demand.
The estimated saving is based on Pakistan’s average monthly HSD imports during FY2025-26 and the indicative international diesel price recorded in July. The figure represents the estimated value of imports avoided compared with the previous fiscal year’s monthly average, rather than the total value of locally produced diesel.
The development came despite a significant increase in domestic HSD demand. HSD sales rose 19% year-on-year and 25% month-on-month during July, but local refineries were able to produce sufficient volumes to meet market requirements.
The sharp reduction in reliance on imported diesel is particularly significant amid elevated international import premiums and supply disruptions affecting petroleum products from the Middle East.
Industry observers said the development highlights the potential benefits of strengthening Pakistan’s domestic refining capacity, particularly for meeting demand for key petroleum products and reducing pressure on the country’s foreign exchange reserves.
However, Pakistan continued to rely on imports for petrol. During July, the country imported approximately 345,361 tonnes of 92 RON petrol to supplement domestic supplies.
Meanwhile, exports of furnace oil remained subdued across high-, medium- and low-sulphur grades, reflecting limited international demand and market conditions.
The zero HSD import requirement in July marks a notable shift in Pakistan’s petroleum supply dynamics, demonstrating that increased domestic refining output can significantly reduce dependence on imported diesel when local production is sufficient to meet consumption.
