Cnergyico Plans 40% Boost in Fuel Oil Exports Amid Slump in Local Sales

September 11, 2025:

Pakistan’s largest refiner, Cnergyico, expects fuel oil exports to rise by 35%–40% in FY26, as higher domestic taxes have sharply reduced local demand. The company has already exported 80,000 tons (95% of production) since July, compared to 55% in the previous fiscal year.

The increase follows the government’s imposition of nearly 40% additional taxes in June, on top of the 18% sales tax, making domestic sales unviable. Last fiscal year, Cnergyico exported 247,000 tons, and the new target could lift volumes to over 330,000 tons.

Pakistan’s overall fuel oil exports also surged to a record 242,000 tons in August, supported by rising shipments from local refiners.

To align with national energy policy, Cnergyico is upgrading its refinery to cut fuel oil output and increase production of cleaner fuels like diesel and gasoline. Plans include fuel oil cracking facilities and higher imports of sweet crude with lower sulphur content.

The company recently booked Pakistan’s first-ever US crude cargo, diversifying beyond Middle Eastern sour crude. Exported fuel oil is being shipped to markets in southern Europe, Singapore, and the UAE.

Domestically, fuel oil demand has fallen due to lower power generation needs, growing solar adoption, and higher output from nuclear and other clean energy sources.