Oil, Gas and Refinery Sectors - updates

Based on data from April 2026, Pakistan's local refinery production is experiencing growth, with high-speed diesel (HSD) and motor spirit (petrol) being the primary products.
Monthly Production (April 2026):
  • Total Refinery Production: Approximately 993,000 tonnes, showing a 10.7% increase year-on-year.
  • High-Speed Diesel (HSD) Production: Approximately 502,000 tonnes (rising 15.1% from a year earlier).
  • Motor Spirit (Petrol) Production: Approximately 235,000 tonnes (up 5.8% from a year earlier).
Key Production & Demand Insights (2026):
  • Refinery Output Rise: Total refinery production reached 924,000 tonnes in October 2025, operating at roughly 75% capacity for diesel.
  • Production vs. Imports: Domestic oil refineries generally meet about 60% of Pakistan’s diesel demand and 30% of its motor gasoline (petrol) demand, with the remainder imported.
  • Diesel Consumption: Diesel sales experienced high demand, with sales showing a 21% month-on-month increase in October 2025.
  • Production Location: Major producers like Attock Refinery Limited (ARL), PARCO, PRL, and NRL contribute to this output.
  • Crude Oil Production: Domestic crude oil production is around 41,000 barrels per day.
Note: These figures are based on the latest available data as of May 2026 and are subject to fluctuation based on refinery shutdowns and import rates.

Goggle AI
 
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The oil disruption in the wake of the US-Iran war has compelled the government to dust off its petroleum refining policy, which was passed almost three years ago but could not be enforced due to flawed negotiations with the International Monetary Fund (IMF).

The government has now assured the refining sector of corrective measures in the upcoming budget to revive $6 billion in investments for refining upgrades and expansion. Pakistan is losing up to $2bn in annual foreign exchange due to expensive petroleum product imports instead of crude.

Read more: https://www.dawn.com/news/1999568/govt-dusts-off-oil-refining-policy-as-hormuz-disruptions-bite
 
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Pakistan imports more than 60 per cent of its diesel from Kuwait under a long-term contract between state-run oil giants of the two countries — Kuwait Petroleum Corporation and Pakistan State Oil.

Kuwait also extended an oil credit facility to Pakistan for an additional two years in April.

In March, Kuwait assured Pakistan of full facilitation in the supply of diesel and jet fuel, which has been stalled due to the closure of the Strait of Hormuz.
 
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Anyone knows how many million barrels of oil Pakistan uses annually and how much we extract or produce internally ?
 

Pakistan and Kuwait Sign New Energy Cooperation Push​


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Islamabad and Kuwait are strengthening cooperation in the energy and refining sectors as both countries look to deepen economic ties and expand long-term strategic partnerships. The discussions focus on enhancing collaboration in oil supply, refining capacity, investment opportunities, and energy security.

In this analysis, economist Ammar Habib Khan explains how this growing partnership could impact Pakistan’s energy landscape, reduce supply pressures, and open new avenues for investment and industrial development. The cooperation also reflects broader regional trends where energy alliances are becoming central to economic stability and growth.

Presented by DECODE with Zunaira Azhar, this episode breaks down the economic significance of Pakistan–Kuwait relations and what it means for future energy planning.
 
This news was deleted in another thread but I think it's important and similar to the entry above.

pgjonline.com

Iran Tightens Hormuz Control Through Iraq, Pakistan Energy Deals

Iraq and Pakistan reached separate agreements with Iran to move crude oil and LNG through the Strait of Hormuz as regional energy disruptions continue.
pgjonline.com pgjonline.com
 
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