Pakistan’s base oils supply slipped to a four-month low in May amid a simultaneous dip in domestic output and imports.Lower supply contrasted with signs of firm lube consumption.Expectations of stronger economic growth in Pakistan over the coming year raised the prospect of an extension of the pick-up in lube demand.Rising demand, and limited domestic base oils production capacity, boosted the incentive for overseas refiners to target the country with more supplies.Those moves showed signs of triggering growing competition for a larger share of Pakistan’s base oils imports.The country’s total base oils supply, or domestic output and imports combined, came to 27,500 tonnes in May and 162,400 tonnes in the first five months of the year, customs and industry data showed.The volume fell from 32,500 tonnes in April and from 163,800 tonnes during the same five-month period last year.Lower supply contrasted with a 4% rise in Pakistan’s lube consumption in the first five months of the year, OCAC data showed..Higher consumption added to signs of a pick-up in the country’s economic growth.Passenger-car sales rose in June for the seventeenth time in eighteen months.Car sales got a boost from the sharp cut in Pakistan’s interest rates, which was enabled by the drop in the country’s inflation.A pick-up in economic growth in turn raised the prospect of a further rise in lube consumption.Such a scenario would boost requirements for base oils supplies from overseas markets.Singapore and especially South Korea were the key sources for more than 75% of Pakistan’s base oils imports in recent years.The dynamic began to change in 2024 as a surge in shipments from the US boosted that country’s share of Pakistan’s imports.The dynamic showed signs of changing again in 2025 amid a sharp pick-up in shipments from Taiwan.The rise in shipments from other sources reflected the attraction of targeting a market with growing lube demand.It also cut Singapore and South Korea’s share of Pakistan’s base oils imports to less than 55% of the total in the first five months of this year..Taiwan’s June base oils exports hold firm.S Korea’s May base oils exports stay low.US’ May base oils exports rise.India’s May base oils imports stay high.India’s June lube demand stays high
