By SKM
December 11, 2025
ISLAMABAD: Pakistan’s major oil refineries have sounded the alarm over what they describe as a rapidly escalating operational crisis, warning that sharply reduced diesel offtake by Oil Marketing Companies (OMCs) now threatens the stability of the country’s fuel supply chain.
In a strongly worded joint letter sent on December 10, 2025, to Oil and Gas Regulatory Authority (OGRA) Chairman Masroor Khan, the chief executives of Attock Refinery Limited (ARL), Pak-Arab Refinery Limited (PARCO), Cnergyico PK Limited (CPL), National Refinery Limited (NRL), and Pakistan Refinery Limited (PRL) cautioned that the slowdown in High-Speed Diesel (HSD) uplifting has placed refinery operations under acute pressure.
The refineries urged OGRA to intervene immediately, warning that without swift enforcement of upliftment commitments, the national oil supply chain could face severe disruptions. They noted that prolonged shortfalls may compel refineries to curtail throughput, deepening Pakistan’s reliance on imported petroleum products.
According to the refinery data, OMCs have fallen significantly short of the upliftment commitments made during the December 2025 Product Review Meeting (PRM). While projected HSD sales for the month stand at 675,000 tons, refineries offered 504,500 tons for local supply. However, during the first nine days of the month, OMCs uplifted only 108,523 tons—far below the prorated requirement of 146,468 tons.
Refinery executives said this persistent shortfall reflects a troubling disregard for PRM allocations and raises serious questions about the enforcement of decisions taken in the monthly coordination forum.
They also highlighted that the widening gap in diesel upliftment is now disrupting operational balance. Even as refineries grapple with low offtake, they are under growing pressure to ramp up jet fuel production to meet rising aviation demand. They warned that without consistent diesel lifting, maintaining adequate jet fuel supply for the country’s airports may become increasingly difficult.
The refineries further criticized what they termed “excessive imports” of petroleum products permitted by OGRA, arguing that such decisions are worsening the imbalance between local production and market uptake. They cited Rule 35(g) of the Pakistan Oil Rules, 2016, which mandates the prioritization of locally produced refinery products before resorting to imports. This requirement, they claimed, is being bypassed, leaving locally refined stocks to accumulate unchecked.
In a sign of the seriousness of the matter, copies of the letter have been forwarded to the Federal Minister for Energy (Petroleum Division), the Secretary of the Petroleum Division, and the Director General (Oil), urging immediate government-level intervention to prevent further deterioration in the country’s fuel supply chain. Ends
