ISLAMABAD: Pakistan's oil sector registered a growth of 5 percent in consumption of petroleum products, rising from 15.69 million tons to 16.41 million tons during FY2024–25, primarily driven by the transport sector, which expanded by 11 percent to 14.78 million tons. However, consumption in the power sector declined sharply by 75 percent, government usage fell by 32 percent, and industrial demand contracted by 16 percent, reflecting reduced reliance on oil-based generation and industrial substitution, said Ogra's State of the Regulated Petroleum Industry 2024-25 report.
Product-Wise Analysis
According to the report, product-wise analysis highlighted strong growth in high-speed diesel (HSD) and motor spirit (MS), which rose by 11% and 10% respectively, together accounting for more than 91% of total petroleum consumption. MS consumption increased to 8.01 million tons, while HSD reached 6.97 million tons. Conversely, furnace oil (FO), light diesel oil (LDO) and jet fuels recorded declines of 45%, 18% and 15% respectively, with FO falling to 0.69 million tons and jet fuels to 0.66 million tons.
Oil Marketing Companies Performance
Oil marketing companies (OMCs) reported total sales of 16.41 million tons, with MS and HSD comprising the bulk of sales. PSO remained the largest supplier but lost 5% market share, while GO gained 7%, emerging as the main gainer. Other players such as Cnergyico and HPL registered modest gains, while PGL and APL lost 1% each.
Refinery Output and Exports
Refinery output increased by 4.91% to 11.20 million tons. PARCO remained the largest contributor with a 42% share, though its production declined by 3%. ARL also recorded a fall of 6.3%, while Cnergyico posted a substantial 39.7% increase. PRL and NRL registered growth of 13.5% and 9.7% respectively. Product-wise, refinery production of HSD, FO, MS, and Naphtha increased, while jet fuel output declined. Notably, naphtha production surged by 59.3%, while jet fuel fell by 11.9%. Exports of petroleum products rose significantly, with naphtha exports increasing by 31% and FO exports by 50%, largely due to reduced domestic demand from the power sector.
Imports and Infrastructure
Imports also expanded, with crude oil imports rising by 11% to 9.33 million tons and finished petroleum product imports increasing by 18% to 7.80 million tons. MS imports grew by 16%, HSD by 18%, and Jet Fuels by 55%. The share of imports in MS consumption rose to 69%, in HSD to 30%, and in jet fuels to 32%, highlighting Pakistan's growing reliance on external supplies. Infrastructure development continued, with OMCs expanding storage capacity to 0.98 million tons for MS and 1.04 million tons for HSD. PSO remained the largest contributor to storage, followed by WEPL, APL, GO, Be Energy, and PGL. Regionally, Punjab and Sindh dominated storage capacity, while Khyber Pakhtunkhwa and Balochistan held smaller shares. OMCs also expanded their retail footprint, operating 11,957 outlets nationwide. PSO maintained the largest network with 3,315 outlets (26%), followed by GO, Askar Oil Services, PGL, APL, and WEPL. Punjab accounted for 67% of outlets, Sindh 22%, KP 9%, and Balochistan 1%.
Gas Sector Overview
On gas sector, the report said that at the national level, SNGPL and SSGCL collectively served 10.83 million consumers, with consumption reaching 3,335 MMCFD. SSGCL served 3.2 million consumers across Sindh and Balochistan, while SNGPL, Pakistan's largest integrated gas company, supplied 7.3 million consumers across Punjab, KP, and AJK. Mari Energies Limited, the country's largest gas producer with a 31% market share, expanded into mining and exploration, strengthening its portfolio. Pakistan Petroleum Limited (PPL) supplied 18% of domestic gas and announced eight new discoveries, while Oil and Gas Development Company Limited (OGDC) reinforced its leadership with significant reserves, seismic activity, and five new gas condensate discoveries. Fertilizer and power sectors recorded strong performance. Fauji Fertilizer Company Limited (FFC) achieved record turnover of Rs. 373.5 billion, saving $1.4 billion in foreign exchange, while Fatima Fertilizer strengthened supply chains with three plants in Punjab.
LNG and LPG Developments
The national gas supply in the country has reached 3,347 MMCFD, with 26% of the country's gas supply met through RLNG imports. Looking forward, the sector faces both opportunities and challenges. Seasonal demand variations, aging infrastructure, and operational risks necessitate modernization and enhanced safety. LNG has become a vital component of Pakistan's energy mix, contributing approximately 11% to national supply and serving as a strategic solution to bridge the country's gas shortfall. With natural gas accounting for nearly 40% of Pakistan's total energy consumption. Operationally, Pakistan currently has two LNG regasification terminals at Port Qasim, Karachi: Engro Elengy Terminal Limited (EETL), commissioned in 2015, and Pakistan GasPort Consortium Limited (PGPCL), commissioned in 2018. Together, these private-sector terminals provide a combined regasification capacity of 1.4 BCFD, contracted by the government through SSGCL and PLL. During FY 2024–25, EETL handled 72 LNG cargoes, while PGPCL handled 44 cargoes. OGRA has granted construction licenses to three private developers—Tabeer Energy (TEPL), Energas Terminal (ETPL), and Global Energy Infrastructure Pakistan (GEIP)—for integrated LNG import and regasification projects at Port Qasim. These projects, once operational, could add up to 2 BCFD of regasification capacity, once final investment decisions are made. In addition, LNG virtual pipeline projects are being developed to transport LNG by sea, road, or rail to consumer sites without conventional pipelines. OGRA has issued licenses to five companies, with some projects progressing toward construction. OGRA has drafted the LNG Terminal and Storage Access Rules and Code, currently under federal government review. These rules will enable multiuser access to LNG terminals, ensuring transparency, fairness, and non-discrimination in terminal usage, while promoting competition and strengthening supply security. During FY 2024–25, total LPG availability stood at 2.4 million metric tonnes, with 29% sourced from domestic refineries and gas-producing fields, and 71% met through imports. Average daily consumption was approximately 6,500 metric tonnes, with the domestic sector remaining the largest consumer, followed by commercial, industrial, and emerging automotive applications. Despite accounting for only 2.7% of Pakistan's primary energy supply, LPG remains indispensable for households, businesses, and industries, particularly during winter when demand for pipeline gas peaks.
