Islamabad March 18 2025: Pakistan refineries production increases 19.59 percent during the month of January 2025 with notable gains in high-margin products like high-speed diesel (HSD) and declines in certain low-margin products like furnace oil.
HSD, a high-margin product, recorded a 26.34% year-on-year increase, reaching 522,174 thousand liters, while furnace oil, a low-margin product, saw a 19.74% rise, with production totaling 211,842 thousand liters. Meanwhile, kerosene oil experienced an exceptional surge of 70.46%, producing 13,170 thousand liters, while motor spirits output rose by 15.37% to 305,262 thousand liters. However, certain products saw sharp declines, with diesel oil (n.o.s.) plummeting 54.01%, petroleum products (n.o.s.) dropping 38.18%, and jute batching oil falling 69.03%. On the other hand, solvent naphtha and LPG witnessed robust growth, increasing by 32.09% and 26.08%, respectively.
Looking at the cumulative production from July 2024 to January 2025, HSD production stood at 3,315,892 thousand liters, marking a 6.34% increase, while furnace oil output declined slightly by 0.96% to 1,543,749 thousand liters. Jet fuel oil saw a 12.65% decrease, totaling 412,381 thousand liters, whereas kerosene oil surged 38.18% to 72,568 thousand liters. Motor spirits remained relatively stable, slipping 0.76% to 1,916,866 thousand liters. Other notable changes included a 50.92% rise in jute batching oil, a 31.86% increase in solvent naphtha, and a 3.80% decline in LPG production, which totaled 481,051 thousand liters. Petroleum products (n.o.s.) experienced a sharp 24.79% decline, reflecting shifting demand patterns.
Overall, the refinery sector demonstrated strong growth in high-margin products such as HSD, while low-margin products like furnace oil showed a modest increase. The data underscores ongoing shifts in product demand, with refiners likely focusing more on high-margin fuels to enhance profitability while balancing production of essential lower-margin products.
