By SKM
April 22, 2026
ISLAMABAD: Pakistan’s already fragile energy supply chain has been dealt a serious blow after Attock Refinery Limited (ARL) shut down its main crude distillation unit due to sweeping traffic restrictions in Islamabad and adjoining districts, choking the movement of oil tankers and disrupting fuel logistics nationwide.
The crisis is unfolding at a time when global energy markets are under renewed stress amid tensions around the Strait of Hormuz, where supply disruptions have tightened oil availability and heightened concerns over energy security.
ARL’s primary processing unit—HBU-I—with a capacity of 32,400 barrels per stream day (BPSD), was taken offline after crude oil inflows and product dispatches were severely hampered by road closures imposed since April 19 in connection with the arrival of foreign delegations for reported US-Iran talks in the federal capital.
The shutdown has led to an immediate and steep decline in output, cutting refinery production by 45–50 percent, including critical fuels such as jet fuel.
“We are down from 42,000 barrels per day to 18,000 barrels per day,” said M. Adil Khattak, Chief Executive Officer of ARL.
In a material disclosure to the Pakistan Stock Exchange, ARL stated that the abrupt suspension of oil tanker movement has significantly reduced crude oil receipts while simultaneously causing a buildup of refined products—particularly Motor Spirit (petrol) and High-Speed Diesel—due to an inability to dispatch supplies.
“As a result, we have shut down our main crude distillation unit (HBU-I) of 32,400 BPSD capacity until improvement in the current traffic restrictions,” the company said, cautioning that the refinery is now at risk of a complete shutdown if the situation persists.
ARL revealed that crude oil supplies from fields operated by Pakistan Petroleum Limited and Oil and Gas Development Company Limited in Khyber Pakhtunkhwa and the Potohar region have been blocked en route, with tankers stopped at multiple locations including GT Road near Sohawa and Mandra, as well as on the N-80 near Fateh Jang.
At the same time, tank lorries belonging to oil marketing companies have been prevented from entering Rawalpindi through key point such as Rawat, Tarnol, and Fateh Jang, effectively halting both inbound crude supply and outbound product distribution.
The company disclosed that crude receipts have already dropped by around 35 percent, while storage capacity (ullage) for refined products is nearing critical limits, with space sufficient for only about two days—raising the risk of further operational shutdowns.
Despite formally alerting authorities—including the Petroleum Division and the Oil and Gas Regulatory Authority (OGRA)—and escalating the matter to the General Headquarters and civil administration, ARL said no effective relief has been provided and restrictions remain firmly in place across Rawalpindi and Attock districts.
In urgent communications, the refinery warned that continued disruption would have far-reaching consequences, including shortages of petroleum products at retail outlets, disruption of fuel supplies to the armed forces, and reduced availability of furnace oil for independent power producers (IPPs), potentially exacerbating electricity shortages.
The refinery also highlighted the risk to aviation operations, noting that jet fuel supplies to Islamabad and Peshawar airports could be affected.
ARL holds strategic importance as the only refinery in northern Pakistan and processes 100 percent indigenous crude, making it a critical pillar of the country’s energy infrastructure and supply chain resilience.
Industry observers say the episode exposes a serious structural vulnerability, where security-driven mobility restrictions can paralyze essential supply chains in the absence of contingency planning or exemptions for critical sectors.
With tankers stranded, crude inflows shrinking, and storage nearing saturation, the situation is rapidly approaching a tipping point.
Unless immediate exemptions are granted for oil tanker movement, Pakistan risks cascading fuel shortages across the country, with spillover impacts on transportation, power generation, aviation, and national security operations. Ends
