ISLAMABAD: Pakistan’s refinery sector has delivered a strong performance in March 2026, with total industry upliftment climbing 13.0percent year-on-year to 972,000 tons, powered by surging demand for motor spirit and high-speed diesel.
This revelation was made in a report of Arif Habib Limited (AHL) Research that clearly pointed out that the headline growth was driven primarily by robust offtake in the two key petroleum products. High-speed diesel upliftment jumped 26.8% year-on-year to 491,000 tons, while motor spirit volumes rose 25.1% to 239,000 tons. Furnace oil, however, moved in the opposite direction, declining 21.1% to 190,000 tons on an industry-wide basis, though underlying OMC data told a more nuanced story — FO offtake by oil marketing companies actually surged 61.6% year-on-year to 88,000 tons, reflecting a sharp rise in FO-based power generation triggered by disruptions in RLNG supply and strengthening industrial demand.
According to industry sources, this divergence signals a meaningful reduction in Pakistan’s loss-making FO export volumes, which had weighed heavily on refinery economics in prior months.
On a cumulative basis, the sector’s nine-month performance through FY26 remained equally impressive, with total upliftment reaching 8.1 million tons — up 12.6% year-on-year — anchored by MS and HSD growth of 13.3% and 23.1% respectively, underscoring the sustained demand momentum building across the country’s energy supply chain.
At the company level, PARCO emerged as the standout performer in absolute volume terms, recording total sales of 415,000 tons in March — up 18.4% year-on-year and 7.2% month-on-month. Its HSD volumes alone surged 31.9% to 223,000 tons, while MS grew a modest 4.8%. On a nine-month basis, PARCO’s cumulative upliftment reached 3.73 million tons, reflecting 20.8% year-on-year growth and cementing its position as the dominant force in Pakistan’s refining landscape.
Cnergyico delivered the most dramatic turnaround of the month, with total sales rising 15.7% year-on-year to 174,000 tons on the back of an extraordinary 123.1% surge in motor spirit volumes and a 104.3% jump in HSD, signaling a dramatic acceleration in operational capacity and market penetration. Its nine-month tally of 1.087 million tons represents 14.5% year-on-year growth, placing it on a strong trajectory heading into the final quarter of the fiscal year.
Attock Refinery posted solid gains, with total March upliftment rising 10.9% year-on-year to 127,000 tons. MS and HSD volumes grew 59.4% and 31.4% respectively, reflecting both higher refinery throughput and strong OMC pull. ATRL’s market share improved to 13.1% in March, up from 11.1% the prior month and approaching its historical average of 13.7%, suggesting a structural recovery in the refinery’s competitive positioning following a period of constrained output.
Pakistan Refinery Limited (PRL) reported a 23.8% year-on-year rise in sales to 139,000 tons, led by a 49.9% surge in motor spirit and a 42.0% increase in furnace oil volumes. HSD growth was comparatively modest at 6.6%. However, PRL’s month-on-month performance was softer, with total volumes slipping 5.6% from February’s 147,000 tons, suggesting some normalization after seasonal front-loading.
National Refinery Limited (NRL) was the sole outlier in an otherwise buoyant sector, with sales declining 11.7% year-on-year to 117,000 tons. The contraction was driven by sharp falls in both motor spirit, down 22.4%, and high-speed diesel, down 17.1%, though furnace oil bucked the trend with an 8.0% increase. NRL’s weakness stood in contrast to the broader industry rally and is likely to attract scrutiny from investors monitoring the refinery’s operational efficiency and product slate optimization in the months ahead.
Over the nine-month period of FY26, total refinery upliftment reached 8.1 million tons, reflecting a healthy 12.6 percent annual increase as sustained demand for transportation fuels continued to drive Pakistan’s downstream recovery despite volatility in fuel pricing, supply disruptions and varying refinery throughput levels.
Industry sources also said that as global fuel markets tightened and several countries struggled with shortages, Pakistan has so far avoided a full-blown energy crisis—not by chance, but because its domestic refineries stepped up when it mattered most. They said that at a time when import flows became uncertain and supply chains showed signs of strain, the response was industry-wide. They said key players including Cnergyico, PARCO, Pakistan Refinery Limited, National Refinery Limited and Attock Refinery Limited collectively increased throughput and maintained supply continuity across the country. The ability of local refineries to respond under pressure has effectively turned domestic refining into the first line of defence against external shocks, said an industry official.
“The lesson from the on-going episode (volatile security situation in Gulf region and closure of Strait of Hormuz) is clear—when imports falter, it is domestic refining that keeps the system running,” industry official added.
It is pertinent to mention that the past few months have offered a real-world stress test. However, Pakistan’s refineries have delivered—scaling up production, stabilising supply, and supporting critical sectors when external conditions deteriorated.
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