Pakistan’s base oils supply fell in December, pausing after a surge in volumes during the second half of the year.Even with the slowdown, Pakistan’s base oils supply rose in the fourth quarter of the year to the highest in two years.The rebound in supply mirrored a recovery in the country’s economic activity that supported a sustained pick-up in lube consumption.Total base oils supply, or domestic production and imports combined, came to close to 29,000 tonnes in December, down from more than 44,700 tonnes the previous month, OCAC and customs data showed.Supply of 113,000 tonnes in the fourth quarter still rose from 84,000 tonnes during the previous three months to the highest since end-2022.Falling interest rates and growing consumer and business confidence raised the prospect of the recovery in Pakistan’s economic activity and lube demand extending into this year.Such a scenario would support firm demand for base oils supplies from domestic sources and especially from overseas markets.Pakistan’s base oils output rose by 2% in 2024 from the previous year, lagging the 20% rise in the country’s imports of the lubricant feedstock.The trend left imports accounting for 70% of Pakistan’s total supply in 2024, up from 66% the previous year.Rising imports reflected the country’s growing demand, while domestic base oils production capacity was fixed and consisted solely of Group I base oils.The shipments from overseas markets mostly originated from key suppliers of premium-grade base oils.Heavy-grade base oils, and especially Group II heavy-neutrals, also continued to account for an unusually large share of the supplies.Supplies from the US accounted for more than 22% of Pakistan's total Group II heavy-grade imports in December and 29% of the total in 2024.The share was up from 1% the previous year, highlighting the growth of Pakistan as a key outlet for Group II heavy-grade supplies from the US..Pakistan’s Nov base oils supply rises.India’s Dec base oil supply lags demand.US’ Nov base oils/lube exports slip.Base Oil News stories and analyses also available on the ICIS platform
