Refinery output rises in April as OMC sales decline amid higher fuel prices

ISLAMABAD: Pakistan’s oil sector showed diverging trends in April 2026, with refinery production increasing while oil marketing companies recorded lower sales during the month.

As per details, refinery output rose 10.7% year-on-year to 993,000 tonnes in April 2026, according to figures cited by Arif Habib Limited. The increase was led by higher production of high-speed diesel and motor spirit.

High-speed diesel output climbed 15.1% from a year earlier to 502,000 tonnes, while motor spirit production increased 5.8% to 235,000 tonnes. The data indicated that stronger demand from oil marketing companies supported refinery activity, alongside expectations linked to imports and price adjustments amid changes in global oil markets.

Refinery utilisation remains stable

Industry-wide capacity utilisation stood at 58.1% in April 2026, compared with 58.0% in March and 52.5% in April 2025.

Among individual refiners, Pakistan Refinery recorded a utilisation rate of 76.1%, while National Refinery operated at 62.4%. Attock Refinery posted 59.4%, and Cnergyico PK Limited remained the lowest at 24.1%.

Product-wise, high-speed diesel accounted for 50.5% of total throughput, followed by motor spirit at 23.6% and furnace oil at 19.7%. Furnace oil output showed mixed movement among refiners, with some companies reporting higher production because of changing demand patterns.

OMC sales contract

On the marketing side, oil marketing companies posted a 7% year-on-year and 6% month-on-month decline in sales to 1.36 million tonnes in April 2026, according to Topline Securities in a report by Myesha Sohail.

Excluding furnace oil, total sales fell 11% year-on-year and 10% month-on-month to 1.22 million tonnes. Motor spirit volumes declined 7% from a year earlier, while high-speed diesel sales dropped 12%.

The report linked the decline largely to higher fuel prices during the month, stating that these were caused by the US-Israeli war against Iran affecting the Middle East. It said the drop in motor spirit and diesel volumes reflected demand destruction after significant price increases.

In contrast, furnace oil sales rose 63% year-on-year and 56% month-on-month to 137,000 tonnes, indicating substitution demand as transport fuels became more expensive.

Company-wise performance and levy collection

As per details, Pakistan State Oil recorded a decline in volumes but maintained a market share of 43.48%. Attock Petroleum was the only listed oil marketing company to post improvement, registering marginal month-on-month growth of 5%.

Hascol Petroleum continued to lag with a sharp fall in sales, while Wafi Energy remained broadly stable on a year-on-year basis.

The data also showed that the government collected Rs1.21 trillion through the petroleum development levy during the first 10 months of FY26, reaching 82% of its annual target of Rs1.47 trillion.

The overall picture for the downstream sector remained uneven in April, with refineries benefiting from stronger diesel-led throughput while oil marketing companies faced pressure from higher prices and weaker demand.