Pakistan exported a record of 189,000 tons of oven oil in January 2025, which represents an increase of 113 % compared to the same month last year and an increase of 47 % from December 2024. This increase comes with the country’s energy sector continues to reduce its dependence on oil The oven is due to high costs and environmental concerns.
Cumulative exports of oven oil increased by 63 % to 895,000 tons during the first seven months of the current fiscal year (7MFY25) compared to the same period last year.
The sharp rise in exports follows the government’s decision to allow the refineries refineries to empty the oven oil surplus in international markets, where local energy stations are increasingly turning into alternative energy sources.
Data of the first half of the fiscal year 25 (July to December 2024) shows that oven oil now plays a small role in the power mix in Pakistan, which represents only 0.2 % of the total electricity generation, which is a sharp decrease of 2.0 % in the same period last year . Meanwhile, power generation costs of oven oil increased by 5 % on an annual basis.
To agree with the advanced energy scene, Pakistan refineries are working to significantly reduce the production of oven oil. Under the new refining policy, the highly sulfur oven oil product is expected to decrease, which reduces daily production from 15,500 metric tons to 3400 metric tons after the planned promotions.
However, the implementation of these promotions was delayed due to differences on sales tax exemptions on petroleum products in the current fiscal year. As the local market continues to move towards the most efficient and sustainable energy alternatives, it is expected that the increasing exports of oven oil will continue.
