Pakistan's refinery product offtake declined 8.1% year-on-year (YoY) in June 2026, as weaker demand for high-speed diesel (HSD) and furnace oil (FO) outweighed continued strength in petrol sales, while higher refinery production contributed to rising inventory levels.

According to the latest industry data, HSD sales dropped 16% YoY to 423,000 tonnes, primarily due to reduced purchases by oil marketing companies (OMCs) and a renewed increase in cross-border fuel smuggling following higher domestic diesel prices. The average ex-refinery HSD price stood at Rs347 per litre, representing a 37.1% increase compared to the same period last year.

In contrast, motor spirit (MS) demand remained strong, with sales increasing 13.3% YoY to 244,000 tonnes, reflecting resilient domestic consumption.

Despite the monthly decline, the refining sector posted solid growth during FY2026, with total refinery product offtake reaching 10.9 million tonnes, an increase of 8.6% over the previous fiscal year. Annual growth was supported by 11% growth in petrol sales and a 13.6% increase in diesel sales.

Among individual refiners, Attock Refinery Limited (ATRL) recorded 6% YoY growth in June sales to 101,000 tonnes, supported by a 36.8% increase in petrol sales and 8.6% growth in diesel volumes. However, the company's market share eased to 11.5%, below its historical average of 13.6%.

Pakistan Refinery Limited (PRL) experienced a 22.3% decline in sales to 100,000 tonnes, mainly due to weaker diesel demand and a 90% drop in furnace oil sales. National Refinery Limited (NRL) also reported a 12.4% decline in sales to 105,000 tonnes, with petrol and diesel volumes falling 7.7% and 23.5%, respectively.

Meanwhile, Cnergyico PK Limited (CNERGY) delivered the strongest performance among local refiners, with total sales increasing 12.4% YoY to 161,000 tonnes, driven by a 66.9% surge in petrol sales and a 23.7% increase in diesel volumes.

On the production side, Pakistan's refineries increased total output by 5.8% YoY to 927,000 tonnes during June. Petrol production rose 8.1% to 492,000 tonnes, while furnace oil production increased 3.1% to 191,000 tonnes. The combination of higher production and weaker diesel demand is expected to have resulted in a build-up of refinery inventories.

The industry's overall capacity utilisation stood at 54.2% during June, compared with 59.2% in May and 51.3% in the corresponding month last year. Among refiners, PRL recorded the highest utilisation rate at 71.6%, followed by ATRL (56.3%), NRL (34.2%), and CNERGY (28.8%).