Cynergyico upgrade project to cost $1 billion under 2023 Refining Policy
Cnergyico PK Limited has laid out a three-pronged forward agenda built on upgrading its refinery, diversifying beyond road fuels into marine fuels and petrochemicals, and extending its reach through pipeline access, a growing retail network and digital customer channels. At the center of the plan is a refinery upgrade project costing more than $1bn, structured in three phases under the 2023 Refining Policy. The project aims to produce substantially less furnace oil and significantly more premium motor gasoline and high speed diesel, with road fuels meeting Euro V emissions standards. The company said the next chapter is already under way and that the focus in FY27 will move from dialogue to delivery, with deeper engagement with investors, analysts and financial institutions and more structured measurement of stakeholder and community outcomes. On diversification, the company is developing an aromatics plant, relocated from Italy, to tap domestic demand for petrochemicals that is currently met largely through imports. The facility is designed to produce four products at scale, including benzene, paraxylene and xylenes, which feed plastics, textiles and industrial manufacturing rather than transport.
The company also produced marine bunker fuels for the first time during the year, with Vitol Bunkers marketing them to ships refuelled directly from Karachi and Gwadar, marking its first entry into higher-value, cleaner marine fuel segments. Operationally, average daily throughput grew 22% year-on-year, tied for the fastest growth among Pakistan’s refiners. The refinery recorded its highest-ever combined daily rate of 79,888 barrels on July 23, 2025, along with record monthly output of high speed diesel, motor gasoline, furnace oil, LPG and kerosene. The company said these volumes directly reduce Pakistan’s import burden for diesel, motor gasoline and fuel oil. The company also secured its first cargo of US crude, one million barrels of West Texas Intermediate delivered aboard MT Pegasus, which it said was the largest tanker to have berthed at a Pakistani port at the time. Management said the delivery widened crude sourcing options and reduced dependence on traditional import routes during a year of disruption around the Strait of Hormuz. Its oil marketing network expanded to more than 480 fuel stations under the Byco brand, while safety performance reached 5.2mn safe man-hours. On the financial front, the company swung back into profit in the fiscal year ended June 30, 2026, posting a consolidated net profit of Rs11.18bn against a net loss of Rs3.59bn a year earlier. The turnaround was driven by a 38% rise in consolidated net revenue to Rs410.24bn from Rs296.72bn, while cost of sales grew a slower 34% to Rs390.68bn. This lifted gross profit nearly 4.7 times to Rs19.56bn from Rs4.19bn, widening gross margin to about 4.8% from roughly 1.4%.
Gas & Oil Pakistan’s bonded warehouses sealed by FIA
Gas & Oil Pakistan Ltd [GO Petroleum] is an Aramco-backed OMC. Its bonded warehouses were sealed by FIA in July 2026 due to alleged illegal removal of bonded fuel without paying duties. FIA filed an FIR in June 2026 alleging GO’s bonded stock at Mehmoodkot terminal was removed and sold into the market without ex-bond declarations and without paying applicable customs duty, petroleum levy and other charges. During a joint inspection in June, FIA found around 7,040 tonnes of bonded petrol in tanks, while company records showed substantially higher stock indicating shortfall. Separate investigation alleges more than 32,000 metric tonnes of tax-unpaid fuel was siphoned into the black market through the cross-country pipeline.
After sealing, GO’s supply chain collapsed – August 2026 total sales fell 67% YoY to 52,000 tonnes – petrol 33k tonnes vs 81k last year, diesel 16k vs 73k. Industry petrol demand fell only 1.3% in same month, so it was company-specific. By September, GO’s market share fell to 5.4% petrol [from 12.6%] and 3.0% diesel [from 14.9%]. After this case, the Prime Minister ordered a nationwide 3-year independent third-party audit of all customs bonded warehouses with physical stock verification, and FBR tightened rules – now daily approval from Customs officer, tank dip in presence of Customs staff, and WeBOC verification required before any ex-bond removal.