Attock Refinery Limited (ARL), the only oil refinery operating in northern Pakistan, has shut down its main crude processing unit due to severe disruption in oil tanker movements caused by security-related road closures ahead of expected foreign delegations in Islamabad.
In a mandatory filing submitted to the Pakistan Stock Exchange (PSX) and the Securities and Exchange Commission of Pakistan (SECP), the refinery confirmed the suspension of its main crude distillation unit with a capacity of 32,400 barrels per stream day.
ARL stated that the restrictions have halted both crude oil deliveries and product dispatches, leading to a sharp rise in stored Motor Spirit (MS) and High-Speed Diesel (HSD), while crude intake has dropped significantly.
The company attributed the disruption to an abrupt suspension of oil tanker lorry movement to and from the refinery between April 18 and April 26, resulting in operational paralysis. It added that the situation has made continued operations unviable until transport routes are restored.
The refinery warned that the closure is likely to have wider consequences for fuel supply across central and northern Punjab, Khyber Pakhtunkhwa, Azad Jammu and Kashmir, and Gilgit-Baltistan, where ARL serves as a key supplier.
Sources indicate that crude production from oil fields in the Potohar region and KP has also been affected, with several operations potentially facing suspension due to lack of transport access.
ARL further highlighted its strategic role in supplying aviation fuel to Islamabad and Peshawar airports, supporting defence requirements, and providing furnace oil to independent power producers. It warned that prolonged disruption could impact fuel availability and electricity generation support.
The refinery said it had repeatedly requested intervention from the Petroleum Division and the Oil and Gas Regulatory Authority (OGRA) to ensure the movement of oil tankers, but was unable to secure exemptions from the restrictions.
The shutdown comes despite recent gains in domestic energy output, including a new high-producing oil and gas well in the Nashpa Block operated by the Oil and Gas Development Company Limited (OGDCL), which contributes a significant share of national crude production and is supplied to ARL for refining.
Energy officials have not yet issued a formal response to the refinery’s shutdown, while concerns are mounting over potential fuel supply disruptions if transport restrictions continue.