By SKM
April 10, 2025
ISLAMABAD: In an alarming development, Attock Refinery Limited (ARL) has shut down its one crude distillation unit having a capacity to refine 5000 barrels per day just as its stocks of petrol and diesel reached a level in its storages with a risk of brimming on account of non-upliftment by oil marketing companies (OMCs).
The management also warned the top functionaries of the government that it would close down its whole operation in case this scenario continues and there is no required improvement in uplifting POL products by OMCs.
In a letter addressed to OGRA and copied to DG Oil on April 9, 2025, the management of the refinery informed that it has closed down one of its crude distillation units with a capacity to refine 5000 barrels per day due to lower uplift of petrol and high speed diesel (HSD) by OMCs, and their stocks have piled up to very high level. So much so, the high speed diesel (HSD) stocks have reached a critical level with minimum ullage available increasing the risk of overflowing from its storages.
According to the letter of which copy is available with exclusivewaves.com.pk, refineries have also sensitized the regulator saying the refinery was already operating at 70 percent capacity and the closure of the said unit has further lowered the capacity utilization. At such lower throughput, continuous operation of downstream units is not possible for an extended period and if this scenario continues and there is no improvement in petrol, HSD upliftment, ARL will be forced to completely shut down the refinery within the coming week.
The management stressed the OGRA to direct oil marketing companies to improve product upliftment at the earliest for the continuity of refinery operations.
Industrial sources said that some OMCs are importing diesel and petrol in excess at the cost of foreign exchange reserves and are not inclined to uplift the products of the local refineries which is why local refineries’ have been forced to shut down their units
As of April 7, 2025, the country has around 720,000 MT of HSD stocks, enough for 45 days of cover. The refineries produce an average of 14000 MT per day, and with the allowance of imports, an additional 138000 MT is expected to arrive in the current month. So in April, another 460,000 MT will be added to the stocks and by the end of April, HSD stocks could cross 800,000 MT—a level that risks overflowing storage capacities and choking refineries ullage. Ends
