Suspension of oil tanker movement due to security measures ahead of expected foreign delegations disrupts refinery operations, raising concerns over fuel availability in northern Pakistan
ISLAMABAD: Attock Refinery Limited (ARL) has temporarily shut down its main crude distillation unit after road closures in Islamabad disrupted the movement of oil tankers, the company said in a regulatory filing on Tuesday, sparking concerns over fuel supply across northern Pakistan.
The shutdown follows traffic restrictions imposed for security arrangements ahead of the expected arrival of foreign delegations linked to potential diplomatic engagements involving the United States and Iran in the federal capital. The restrictions have effectively halted the transportation of crude oil to the refinery and the dispatch of refined petroleum products.
In its filing to the Pakistan Stock Exchange and the Securities and Exchange Commission of Pakistan, ARL confirmed that its crude distillation unit, with a processing capacity of 32,400 barrels per day, has been taken offline until logistical conditions improve.
The company stated that the abrupt suspension of oil tanker movement has directly impacted refinery operations, leading to a significant drop in crude oil receipts. At the same time, inventories of Motor Spirit (petrol) and High-Speed Diesel have surged due to constraints in product distribution.
As the only refinery operating in northern Pakistan, ARL plays a critical role in supplying fuel to central and northern Punjab, Khyber Pakhtunkhwa, Azad Jammu and Kashmir, and Gilgit-Baltistan. It also provides aviation fuel to Islamabad and Peshawar airports, as well as furnace oil to independent power producers, making the disruption a potential threat to multiple sectors including transport, aviation, and energy.
Industry sources warned that continued restrictions could force a shutdown of crude oil production in fields located in Punjab’s Jhelum and Attock regions, along with several oilfields in Khyber Pakhtunkhwa. A prolonged disruption in tanker movement may also create structural challenges for upstream operations.
ARL had earlier requested exemptions from the Petroleum Division and the Oil and Gas Regulatory Authority to allow tanker movement between April 18 and April 26, but the company indicated that it had not received the necessary approvals.
In its correspondence with authorities, ARL cautioned that extended logistical disruptions could significantly impact product upliftment and may ultimately force a complete shutdown of refinery operations if unresolved.
The development comes at a time when Pakistan is actively working to enhance domestic oil and gas production. Recently, the Oil and Gas Development Company Limited announced the commencement of commercial production from the Baragzai X-01 well in the Nashpa block in Khyber Pakhtunkhwa, one of the country’s major energy discoveries.
According to officials, the well is currently producing approximately 15,000 barrels of oil per day and 45 million cubic feet of gas, with expectations of further increases in output. The crude extracted from this field is transported to Attock Refinery for processing, highlighting the refinery’s strategic importance in the national energy supply chain.
Energy analysts have cautioned that ongoing logistical bottlenecks could undermine gains from increased domestic production and place additional pressure on fuel availability if the situation persists.
About The Author
