Pakistan Refinery Sector Records 7% Decline as Diesel Demand Weakens
Pakistan’s refinery sector recorded a 7 percent year-on-year decline in total upliftment in May 2026, mainly due to reduced demand for high-speed diesel (HSD) and furnace oil (FO), according to industry data.
Total refinery upliftment fell to 927,000 tons in May compared to 997,000 tons in the same month last year. Analysts say the decline reflects shifting fuel consumption patterns and changing market dynamics.
High-speed diesel remained the primary contributor to the decline, with uplift falling 19.1 percent year-on-year to 409,000 tons. Industry observers attribute the drop to lower purchases by oil marketing companies as well as pressure from price differences that may have encouraged cross-border movement.
Furnace oil uplift also declined, dropping 4.2 percent year-on-year to 220,000 tons. However, demand for furnace oil has shown some recovery in recent months due to its use in power generation amid supply constraints in other energy sources.
In contrast, motor spirit (petrol) demand showed resilience, increasing 4.3 percent year-on-year to 247,000 tons, supported by steady transportation activity.
Performance among individual refineries varied. Some facilities reported modest growth in upliftment, while others experienced declines, with the country’s largest refinery seeing a double-digit decrease.
Experts note that Pakistan’s petroleum demand patterns are gradually shifting, with petrol maintaining stability while diesel consumption faces pressure from economic conditions and efficiency improvements. Furnace oil usage, meanwhile, is fluctuating depending on energy supply requirements.
Despite monthly variations, overall refinery activity during the first 11 months of FY2025-26 remained broadly stable compared to the previous year, indicating a relatively steady underlying fuel demand trend.
