KARACHI: The oil refining sector maintained domestic fuel supplies in March 2026 despite disruptions to global crude markets caused by escalating tensions between the US and Iran.
Industry sources said local refineries adjusted procurement plans, diversified crude sourcing and strengthened inventory management to manage supply risks.
Pak-Arab Refinery Company (Parco) secured six crude cargoes during March, with seven more expected in the coming days. National Refinery Limited (NRL) arranged three cargoes, with a fourth due shortly, and also procured 45,000 tonnes of local crude from United Energy Pakistan Limited (UEP).
Pakistan Refinery Limited (PRL) and Cnergyico PK also secured crude supplies amid tighter global availability, while Attock Refinery Limited (ATRL) relied largely on domestic crude, limiting its exposure to external disruptions.
According to a report by Arif Habib Limited, total refinery uplift rose 13 per cent year-on-year (YoY) in March, driven by stronger demand for petroleum products, particularly motor spirit (MS) and high-speed diesel (HSD).
HSD and MS uplift increased 26.8 per cent and 25.1 per cent YoY to 491,000 tonnes and 239,000 tonnes, respectively, supported by higher oil marketing company demand, expectations of price increases and reduced inflows of Iranian fuel.
Furnace oil (FO) sales by refineries declined 21.1 per cent YoY to 190,000 tonnes. However, oil marketing company data showed FO offtake rising 61.6 per cent YoY to 88,000 tonnes, reflecting increased use in power generation amid RLNG supply disruptions and higher industrial demand. The trend indicates a reduction in loss-making FO exports seen in earlier months.
During the first nine months of FY26, total refinery uplift stood at 8.1 million tonnes, up 12.6 per cent YoY, supported by higher MS and HSD demand, which rose 13.3 per cent and 23.1 per cent, respectively.
Among refiners, ATRL recorded sales of 127,000 tonnes in March, up 10.9 per cent YoY, with MS and HSD sales rising 59.4 per cent and 31.4 per cent, respectively, while FO sales fell 67.8 per cent. Its market share increased to 13.1 per cent from 11.1 per cent in the previous month.
PRL reported a 23.8 per cent YoY increase in sales to 139,000 tonnes, supported by higher MS, HSD and FO volumes. NRL posted an 11.7 per cent decline in sales to 21,000 tonnes, reflecting lower MS and HSD output.
Cnergyico PK recorded a 15.7 per cent YoY increase in sales to 174,000 tonnes, driven by strong growth in MS and HSD volumes, which rose 123.1 per cent and 104.3 per cent, respectively.
Parco remained the largest contributor, producing 101,000 tonnes of motor spirit, 220,000 tonnes of high-speed diesel, 57,413 tonnes of furnace oil and 37,000 tonnes of jet fuel (JP-1).
The conflict affected key shipping routes in the Middle East, delaying cargo movements and increasing volatility in international oil prices. With parts of the Strait of Hormuz facing operational risks, supply chains came under pressure, raising concerns over fuel availability in import-dependent economies, including Pakistan.
Refineries also explored alternative shipping routes and suppliers to bypass higher-risk areas, supporting the timely arrival of crude consignments. Coordination between refineries, shipping agents and government institutions helped ensure smooth handling and processing, preventing supply shortages.
