Attock Refinery Limited (ARL) has temporarily ceased operations of its primary crude distillation unit after traffic restrictions in Islamabad disrupted vital oil supply routes, raising concerns about fuel availability in northern Pakistan. The refinery announced the shutdown on Tuesday, highlighting the impact of road closures implemented for security ahead of the anticipated arrival of foreign delegations connected to potential US-Iran negotiations in the capital.
The imposed restrictions have halted the movement of oil tankers, severely affecting both crude oil deliveries to the refinery and the distribution of refined petroleum products. In an official filing with the Pakistan Stock Exchange and the Securities and Exchange Commission of Pakistan, ARL confirmed that its main distillation unit, with a processing capacity of 32,400 barrels per day, would remain offline until the supply chain disruptions are resolved.
The company stated that the suspension of oil tanker traffic was a direct consequence of the heightened security measures surrounding the foreign delegations’ visit. This disruption has led to a significant drop in crude oil receipts, while inventories of Motor Spirit (petrol) and High-Speed Diesel have accumulated due to dispatch constraints.
As the sole refinery serving northern Pakistan, ARL plays a crucial role in supplying fuel to central and northern Punjab, Khyber Pakhtunkhwa, Azad Jammu and Kashmir, and Gilgit-Baltistan. Additionally, it provides aviation fuel to Islamabad and Peshawar airports and supplies furnace oil to independent power producers. The shutdown therefore poses risks to transportation, aviation, and energy sectors across these regions.
Industry insiders warn that if tanker movement remains restricted, crude oil production could be halted at oilfields in Punjab’s Jhelum and Attock districts, as well as multiple fields in Khyber Pakhtunkhwa. Prolonged interruptions may also cause significant challenges to upstream oil operations.
Earlier, ARL had requested exemptions from the Petroleum Division and the Oil and Gas Regulatory Authority for tanker movement between April 18 and April 26 but did not receive approval. The company cautioned that extended disruptions could force a reduction in refinery throughput or even a complete shutdown.
This development coincides with Pakistan’s efforts to increase domestic oil and gas output. The state-owned Oil and Gas Development Company Limited (OGDCL) recently commenced commercial production from the Baragzai X-01 well in the Nashpa block of Khyber Pakhtunkhwa, one of the nation’s largest discoveries. The well currently produces approximately 15,000 barrels of oil daily along with 45 million cubic feet of gas, with expectations for further increases. Crude from this field is transported to ARL for refining, emphasizing the refinery’s strategic importance in the supply chain.
Energy analysts warn that ongoing logistical challenges could undermine the benefits of rising domestic production and place additional strain on fuel supplies if the disruptions continue.
