Pakistan’s fuel oil exports hit an all-time high this year. Industry data confirms that exports breached 1.4 million metric tons in 2025. This marks a significant shift for the country’s energy sector.
According to shipping data from Kpler, export volumes jumped over 16% compared to 2024. LSEG data corroborates this trend, showing a rise from 1.11 million tons last year to 1.33 million tons so far in 2025. Most of these shipments landed in Southeast Asia and the Middle East.
The surge in exports is not accidental. It stems directly from changing domestic policies and technology adoption. The government recently raised taxes on domestic fuel oil consumption. Consequently, selling fuel oil locally became less profitable.
Simultaneously, power generation plants are moving away from traditional fuels. Generators are rapidly switching to cleaner alternatives like solar and coal. As domestic demand drops, refiners must export to avoid inventory limits that previously constrained their operations.
Pak-Arab Refinery led the export charge this year. Other key players contributing to the volume included Attock Refinery, National Refinery, and Pakistan Refinery.
Cnergyico, the country’s largest oil refiner, is also aggressive in this space. Cnergyico Vice-Chairman Usama Qureshi expects at least 50% growth this fiscal year. The company recently partnered with global trading house Vitol to supply more low-sulphur marine fuel. Furthermore, their use of light-sweet crude has boosted the output of very low sulphur fuel oil (VLSFO).
However, this influx of Pakistani oil impacts the broader market. Traders note that the increased supply weighed on prices in Asia. Valerie Panopio of Rystad Energy highlighted that the post-summer excess supply has already depressed market cracks in the region.
Pakistan’s fuel oil exports momentum will likely continue. Industry sources expect the trend to hold steady or climb further in 2026. Syed Nazir Abbas Zaidi, Secretary General of Pakistan’s Oil Companies Advisory Council, was clear about the future. He stated:
Fuel oil is no longer viable in electricity generation, and no longer profitable to sell in the domestic market, following the last budget.
Pakistan, which turned from a net importer to a net exporter of fuel oil in 2023, appears set to maintain this position as the local power sector evolves.