Q4 and full-year base oils supply rises to highest levels since 2022Strong demand drives 2025 base oils imports to multi-year highRising consumption and expanding overseas supply intensify competition for market share in Pakistan.Pakistan’s base oils supply extended its rise in December, climbing for the fifth time in six months and reinforcing signs of a sustained recovery in the country’s lubricants consumption and broader economic activity..Total base oils supply, or domestic output and imports combined, exceeded 36,000 tonnes in December, up from 33,000 tonnes in November and 25% higher year on year, OCAC and customs data showed.Stronger lubricants demand increased requirements for additional feedstock from overseas refiners, making Pakistan an increasingly important outlet for Asia’s expanding base oils production capacity..Key Highlights· Fourth-quarter supply rose to 116,000 tonnes, climbing for the seventh time in eight quarters to its highest level since the first half of 2022..· Full-year supply increased to 420,000 tonnes, up 7% year on year and the highest since 2022.· Imports played a key role in meeting demand, with fourth-quarter inflows climbing 27% to a three-year high.· Imports rose to more than 290,000 tonnes in 2025, up 6% year on year and the highest in at least five years.· South Korea remained Pakistan’s largest base oils supplier in 2025, with its market share edging up to 40% of total imports..S Korea’s December Base Oils Exports Rise on Strong Asia Demand .· Singapore’s share dipped to 20%, down from 37% in 2024 and slipping behind the US for the first time..Market RepercussionsHigh-frequency economic indicators, including automobile sales and Pakistan’s purchasing managers’ index, suggest the country’s economic recovery extended into early 2026.Stronger industrial and transport activity is likely to sustain firm lubricants consumption, supporting continued requirements for additional base oils volumes from overseas markets.Competition to cover more of Pakistan’s rising demand already intensified in 2025 amid a surge in shipments from suppliers such as Taiwan and the US..Taiwan’s January Base Oils Exports Stay Elevated For Second Month.That competition for market share is likely to extend into 2026 as rising global base oils production capacity increases pressure on refiners to secure outlets for their volumes.
