Refineries warn of supply chain risks as OMCs cut diesel upliftment in December

Pakistan’s major oil refineries have cautioned that reduced high-speed diesel (HSD) upliftment by oil marketing companies (OMCs) is creating operational challenges and could disrupt the country’s fuel supply chain if not addressed immediately.

According to reports, in a joint letter dated December 10, 2025, Attock Refinery Limited (ARL), Pak-Arab Refinery Company (PARCO), Cnergyico PK Limited (CPL), National Refinery Limited (NRL) and Pakistan Refinery Limited (PRL) informed Oil and Gas Regulatory Authority (Ogra) Chairperson Masroor Khan that OMCs were not lifting the volumes agreed during the Product Review Meeting (PRM) for December.

The refineries said decisions taken at the Product Review Meeting regarding fuel allocation and upliftment were consistently disregarded, leaving them unable to run plants efficiently. They noted that the slowdown in both motor spirit (MS) and HSD upliftment this month was already straining operations.

According to projections, total HSD sales for December were expected to reach 675,000 tonnes, with local refineries offering 504,500 tonnes. However, from December 1 to 9, OMCs lifted only 108,523 tonnes against a prorated target of 146,468 tonnes. The refineries said the gap raised questions about the enforceability of PRM decisions.

They added that while struggling with reduced diesel upliftment, refineries were simultaneously under pressure to increase jet fuel output to meet higher airport demand—a balance that would become increasingly difficult unless HSD upliftment normalised.

The refineries also cited Rule 35(g) of the Pakistan Oil Rules, 2016, which mandates prioritising locally produced fuel over imports. They alleged that excessive imports cleared by Ogra had worsened the situation, leaving substantial volumes of locally refined product unsold.

Copies of the letter were forwarded to the minister for energy, the petroleum secretary and the director-general (Oil), underscoring the industry’s concerns. 

The refineries urged immediate regulatory intervention to ensure prioritised upliftment of domestic fuel supplies and avert disruptions to the national supply chain.