Capital road blockades cripple refinery logistics

Attock Refinery Ltd announces closure of main crude plant

ISLAMABAD:

Amid road blockades linked to a second round of US-Iran ceasefire talks in Islamabad, the Attock Refinery Limited (ARL) has warned of a looming oil crisis, citing falling crude supplies and approached the GHQ to clear stranded crude tankers.

The refinery, which processes 100% indigenous crude oil sourced from Khyber-Pakhtunkhwa and the Potohar region, is facing an imminent shutdown due to ongoing traffic restrictions affecting the movement of both crude oil and petroleum products over the past four days.

Despite formally highlighting the gravity of the situation and its serious consequences to the Petroleum Division and OGRA, no relief has been provided so far.

The refinery had approached the GHQ and the civil administration; however, traffic restrictions in Rawalpindi and Attock districts continue unabated.

As a result, it was compelled to shut down its main distillation unit last night, and a complete refinery shutdown is likely if the restrictions are not lifted immediately.

Such a shutdown will severely disrupt the supply of petroleum products to the general public, armed forces, and power plants. Additionally, it will impact the availability of jet fuel for Islamabad and Peshawar airports.

M Adil Khattak Chief Executive Officer Attock Refinery Limited (ARL), in a letter to Ogra chairman and the director general (oil) Petroleum Division said that the closure of roads for the movement of oil tank lorries from Sunday (April 19) due to the expected arrival of foreign delegates in Islamabad.

"As you are aware, the Attock Refinery Limited (ARL) is the only refinery located in the northern region of the country. It receives crude oil from local oil fields in Khyber Pakhtunkhwa and the Potohar region, and plays a critical role in meeting the petroleum requirements of this region and beyond. This includes the supply of aviation fuel to Islamabad and Peshawar airports, as well as fuel support to the Armed Forces. Additionally, in light of the ongoing energy challenges in the country, ARL is supplying Furnace Fuel Oil to Independent Power Producers (IPPs) to help mitigate power shortages," the letter reads.

The CEO said that tank lorries carrying crude oil from the PPL and the OGDCL oilfields to the ARL have been stopped by traffic police at GT Road Sohawa/Mandra and near Jaffar (approximately 15 km short of Fateh Jang on N-80) due to traffic restrictions imposed in connection with the Islamabad talks since April 19, 2026.

Similarly, tank lorries belonging to OMCs arriving at our refinery for product lifting have been restricted from entering Rawalpindi limits at multiple locations, including Rawat, Tarnol, and Fateh Jang, etc.

"Abrupt suspension of the oil tank lorry movement to and from the ARL since the above date has adversely impacted crude oil receipts as well as product dispatches, directly affecting refinery operations. Due to constraints in product dispatch, our stocks of Motor Spirit (MS) and High-Speed Diesel (HSD) have increased significantly, with available ullage sufficient for only about two days," Khattak said in his letter, adding that concurrently, our crude oil receipts have declined by approximately 35% due to the road closures.

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 leaving only the small units to continue operations at reduced throughput.

"We respectfully request your kind intervention to grant exemption from the imposed restrictions, enabling uninterrupted movement of crude and product oil tank lorries to and from the refinery. This will help prevent potential disruptions in the supply of refined petroleum products at retail outlets, including critical fuels for airports, defense requirements and power units," the letter added.