Refinery production jumps 49.8% as utilisation improves, while furnace oil output surges amid RLNG supply disruptions
KARACHI: Pakistan’s refinery sector recorded strong growth in production and upliftment during August 2026, supported by improved refinery utilisation and higher demand for motor spirit (MS), high-speed diesel (HSD) and furnace oil (FO), according to a research report by Arif Habib Limited.
Refinery upliftment increased 32.2 per cent year on year (YoY) in August, although it declined 15.7 per cent month on month (MoM) as oil marketing companies (OMCs) reduced purchases amid higher domestic fuel prices.
During the first two months of fiscal year 2026-27 (2MFY27), overall refinery upliftment rose 40.2 per cent YoY to 2.107 million tonnes.
Refinery production rises 49.8 per cent
Industry-wide refinery production increased 49.8 per cent YoY to 1.112 million tonnes in August, driven by improved utilisation.
MS production rose 42.7 per cent YoY to 255,000 tonnes, while FO production jumped 85.1 per cent to 258,000 tonnes.
The increase in FO production was attributed to higher power demand and greater reliance on FO-based power generation amid disruptions in RLNG supplies.
HSD production increased 38.7 per cent YoY to 533,000 tonnes.
The industry’s FO and HSD throughput remained broadly stable at 23 per cent and 48 per cent, respectively, while MS throughput declined to 23 per cent, remaining below its historical average.
Overall refinery utilisation improved to 65.1 per cent in August, compared with 56.3 per cent in July 2026 and 54.2 per cent in June 2026.
Company-wise refinery performance
Attock Refinery Limited (ATRL) recorded the strongest improvement among the major refineries, with total sales increasing 86.2 per cent YoY.
FO sales surged 891.6 per cent, supported by lower curtailment and improved refinery utilisation following the arrival of only one RLNG cargo.
ATRL’s MS sales increased 69.1 per cent YoY to 61,000 tonnes, while HSD offtake rose 42.6 per cent to 47,000 tonnes.
Its market share stood at around 15 per cent, slightly above its historical average of 13.8 per cent.
Pakistan Refinery Limited (PRL) recorded a 47.7 per cent YoY increase in sales to 131,000 tonnes.
MS sales rose 80.9 per cent to 28,000 tonnes, FO sales increased 46.2 per cent to 39,000 tonnes, and HSD dispatches climbed 32.2 per cent to 58,000 tonnes.
National Refinery Limited (NRL) posted a 16.5 per cent YoY increase in sales to 131,000 tonnes.
MS sales rose 20 per cent to 29,000 tonnes, while HSD volumes increased 30.4 per cent to 75,000 tonnes. FO sales, however, declined to 23,000 tonnes.
Cnergyico PK Limited (CNERGY) recorded the largest percentage increase in total sales, rising 153.7 per cent YoY to 167,000 tonnes.
MS sales surged 571 per cent to 34,000 tonnes, while FO sales increased 172 per cent to 78,000 tonnes and HSD sales rose 72 per cent to 55,000 tonnes.
Refinery utilisation
ATRL operated at a 74 per cent utilisation rate in August, with MS and FO throughput improving to 38 per cent and 21 per cent, respectively, while HSD throughput fell to 33 per cent.
PRL recorded the highest utilisation among the four refineries at 80 per cent. Its MS and HSD throughput improved to 19 per cent and 50 per cent, respectively, while FO throughput remained stable at 26 per cent.
NRL operated at 62 per cent utilisation, with MS, HSD and FO throughput declining to 17 per cent, 53 per cent and 25 per cent, respectively.
CNERGY operated at 36 per cent utilisation. FO and MS throughput declined to 37 per cent and 16 per cent, respectively, while HSD throughput improved to 47 per cent.
The data indicate a significant recovery in refinery production and utilisation in August, although higher domestic fuel prices continued to weigh on OMC purchases and monthly refinery upliftment.
The sector’s performance will remain closely linked to domestic fuel demand, RLNG availability, power-sector requirements and movements in petroleum prices in the coming months.