Attock Refinery shuts main distillation unit amid road closures disrupting crude supply

ISLAMABAD: Pakistan’s oil supply chain has come under strain as Attock Refinery Limited (ARL) shut down its main crude distillation unit (HBU-I) of 32,400 barrels per day (BPD) capacity following severe logistical disruptions caused by security-related traffic restrictions for the second round of potential Islamabad talks.

The talks in the federal capital led to strict security measures and road closures across Islamabad and Rawalpindi, significantly disrupting business activities and daily life. Key transport routes were blocked or restricted, halting the movement of oil tank lorries and creating bottlenecks in crude supply and product dispatches for the petroleum sector.

ARL, in its communication to the Pakistan Stock Exchange (PSX) on Wednesday, confirmed that the HBU-I unit has been shut down and will remain offline “till restoration of normalcy,” raising uncertainty over fuel supply stability in the northern region.

In a letter addressed to the Oil and Gas Regulatory Authority (OGRA), the refinery had earlier warned that “the abrupt suspension of oil tank lorry movement to and from ARL due to road closures has adversely impacted crude oil receipts as well as product dispatches, directly affecting refinery operations.”

Highlighting the severity of the disruption, ARL stated that “our crude oil receipts have declined by approximately 35% due to the road closures,” underscoring the impact on refinery throughput.

At the same time, the company pointed to mounting product stocks, noting that “our stocks of Motor Spirit (MS) and High-Speed Diesel (HSD) have increased significantly, with available ullage sufficient for only about two days.”

The refinery had issued a clear warning to authorities, stating: “In case the traffic restrictions are not immediately lifted, we would be left with no option but to shut down our main crude distillation unit.” That warning has now materialized with the shutdown of HBU-I.

ARL also emphasized its strategic importance, stating it is “the only refinery located in the northern region of the country,” catering to fuel requirements of Islamabad, Khyber Pakhtunkhwa, and adjoining areas, including critical sectors such as aviation, defense and power generation.

The company cautioned that continued restrictions could lead to broader supply disruptions, warning that uninterrupted logistics are essential to avoid “potential disruptions in the supply of refined petroleum products at retail outlets, including fuels for airports, defense requirements, and power units.”

The shutdown of a key refining unit is expected to put additional pressure on fuel supply management, with industry stakeholders closely watching how quickly normal traffic flow is restored to stabilise operations.