/Reuters Agency
Pakistan’s annual fuel oil exports hit a record high this year and are expected to remain stable or even increase next year, as higher domestic taxes discouraged purchases while power plants are switching to cleaner alternatives, according to industry sources.
The rebound in Pakistani fuel oil shipments has increased supply in Asia, putting further pressure on prices in a market that is already well-supplied, traders and analysts said.
Pakistan’s fuel oil exports reached a new high this year, according to shipping data from Kpler and LSEG.
Cumulative loadings so far this year exceeded 1.4 million metric tons (approximately 8.9 million barrels), an increase of more than 16% compared to the total volume for 2024, according to Kpler data, with most of these shipments destined for Southeast Asia and the Middle East.
LSEG data showed exports of 1.33 million tons so far in 2025, up from 1.11 million tons last year.
The cargoes were mainly high-sulfur fuel oil (HSFO) and were mostly destined for marine fuel supply, while some volumes were sent to refineries as feedstock, according to market sources.
“Pakistan mainly exports HSFO to Asia, where an oversupply has been observed after the summer season, which has depressed cracks in the region,” said Valerie Panopio, vice president of oil product markets at Rystad Energy.
Pakistani refineries sold more fuel oil through tenders this year after the government increased taxes on the domestic consumption of this fuel, while power generators are leaning towards alternatives like coal and solar power.
The main fuel oil exporter from Pakistan was Pak-Arab Refinery, according to traders, while other exporters included Cnergyico, Attock Refinery, National Refinery and Pakistan Refinery.
Cnergyico, which is the country’s largest refinery, said it aims to increase its exports. The company exported about 247,000 tons of fuel oil in the fiscal year 2024–2025, according to its vice president Usama Qureshi.
Qureshi added that he expects at least 50% growth in this fiscal year, supported by the increased use of light sweet crude which boosted its production of very low-sulfur fuel oil.
The company has partnered with the global trading house Vitol to supply more low-sulfur marine fuel from Pakistan’s ports.
“The increase in fuel oil exports in recent years has helped ensure that refinery operations are not constrained by inventories, which was a problem in previous years,” said Xin Shuai Huang, oil market analyst at FGE.
According to industry sources in Pakistan, next year exports are likely to hold steady or increase further.
“The trend in fuel oil exports is only going to grow going forward towards 2026,” said Syed Nazir Abbas Zaidi, secretary general of the Pakistan advisory council for oil companies.
“Fuel oil is no longer viable for power generation, nor profitable to sell in the domestic market, after the latest budget,” he added.
Pakistan shifted from being a net importer to becoming a net exporter of fuel oil in 2023.
