Pakistan’s base oils supply held firm in April as the country’s improving economic activity boosted lubricants consumption.Rising demand in turn increased the country’s requirements for additional base oils supplies from overseas markets.The US especially continued to tap those requirements, with its supplies accounting for an increasingly large share of Pakistan’s base oils imports.The country’s total supply, or domestic output and imports combined, came to 33,000 tonnes in April, industry and customs data showed.The volume edged up from close to 31,000 tonnes in March and lifted total supply to 108,000 tonnes in the three months to April..The three-month volume rose by 4% and for a ninth straight month from year-earlier levels.Pakistan’s rising base oils requirements coincided with multiple signs of improving economic activity in the country.Falling inflation over the last two years gave the central bank the room to cut interest rates steadily from the middle of last year.Lower interest rates supported improving business and consumer confidence and facilitated a recovery in automobile sales, which rose in April for a fourteenth month.The recovery in base oils demand, and limited domestic production capacity, increased its requirements for supplies from overseas markets.Base oils imports accounted for 72% of Pakistan’s base oils supply in the first four months of the year, reflecting that dynamic. The share was up from 70% in 2024 and 66% in 2023.Shipments from the US accounted for an increasingly large share of those supplies.Imports of more than 22,000 tonnes from the US in the first four months of the year accounted for 23% of Pakistan’s total import volume.The share was up from 17% in 2024 and 1% in 2023.All the US supplies consisted of Group II heavy grades.The trend highlighted Pakistan’s role as an increasingly valuable outlet for US Group II heavy-grade base oils.It also highlighted the growing competition that those US shipments created for regular suppliers in Asia..India's April base oils supply exceeds demand.Asia’s April lube demand falls.Pakistan’s January base oils supply falls.US’ April base oils/lube exports fall.Base Oil News stories and analysis also available on ICIS platform
