Attock Refinery shuts key unit as Islamabad road closures disrupt oil supply

ISLAMABAD: Attock Refinery Limited (ARL) has temporarily shut down its main crude distillation unit after traffic restrictions in the capital disrupted oil supply chains, the company said on Tuesday, raising concerns over fuel availability across large parts of northern Pakistan.

The refinery said movement of oil tankers had been abruptly suspended due to road closures imposed for security arrangements ahead of the expected arrival of foreign delegations linked to potential US-Iran talks in Islamabad.

The restrictions have severely affected both the receipt of crude oil and the dispatch of refined petroleum products.

In a regulatory filing to the Pakistan Stock Exchange and the Securities and Exchange Commission of Pakistan, ARL said it had shut down its main crude distillation unit with a capacity of 32,400 barrels per day until the situation improves.

“We wish to inform you that due to the expected arrival of foreign delegates in Islamabad, there has been an abrupt suspension of oil tank lorry movement to and from ARL,” the company said, adding that the disruption had “directly affected refinery operations.”

The refinery reported a sharp decline in crude oil receipts due to blocked supply routes, while inventories of Motor Spirit (petrol) and High-Speed Diesel have risen significantly because of constraints in product dispatch.

ARL, the only refinery in northern Pakistan, 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 and supplies furnace oil to independent power producers, making its shutdown a potential risk for transport, aviation and energy sectors.

Industry sources said the disruption could force a halt in crude production from oilfields in Punjab’s Jhelum and Attock regions, as well as several fields in Khyber Pakhtunkhwa, if tanker movement is not restored soon. Prolonged suspension may also pose structural challenges to upstream operations.

The company had earlier written to the Petroleum Division and the Oil and Gas Regulatory Authority seeking exemption from the restrictions for oil tanker movement between April 18 and April 26, but said it had not secured clearance.

“Any prolonged disruption in tanker movement would significantly affect product upliftment and could ultimately force ARL to reduce refinery throughput, potentially leading to a complete shutdown,” the company warned in its correspondence with authorities.

The development comes at a time when Pakistan is seeking to boost domestic oil and gas output. State-run Oil and Gas Development Company Limited recently announced the start of commercial production from the Baragzai X-01 well in the Nashpa block in Khyber Pakhtunkhwa, one of the country’s largest discoveries.

According to OGDCL, the well is currently producing about 15,000 barrels of oil per day and 45 million cubic feet of gas, with output expected to rise further. Crude from the field is transported to ARL for refining, underscoring the refinery’s strategic importance in the supply chain.

Energy analysts warn that continued logistical bottlenecks could offset gains from increased domestic production and strain fuel supplies if the situation persists.