KARACHI/ISLAMABAD: Pakistan’s leading oil refineries have issued a stark warning of potential fuel supply disruptions after oil marketing companies (OMCs) sharply cut their upliftment of high-speed diesel (HSD), creating what refineries describe as a serious threat to the stability of the national oil supply chain.
In a joint letter sent on December 10, 2025, to Oil and Gas Regulatory Authority (Ogra) Chairperson Masroor Khan, Attock Refinery Limited (ARL), Pak-Arab Refinery Limited (PARCO), Cnergyico PK Limited (CPL), National Refinery Limited (NRL) and Pakistan Refinery Limited (PRL) said OMCs were failing to lift diesel volumes committed during the December 2025 Product Review Meeting (PRM).
The refineries said PRM decisions on product allocation and upliftment were being routinely ignored, leaving the refining sector under severe strain. They noted that the slowdown in the upliftment of both MS and HSD had triggered significant operational challenges this month.
Local refineries had projected HSD sales of 675,000 tonnes for December and offered 504,500 tonnes from local production. However, from December 1–9, OMCs lifted only 108,523 tonnes—well below the prorated target of 146,468 tonnes. The refineries said the shortfall cast doubt on the effectiveness and enforceability of PRM allocations.
They further highlighted that even as they struggled with reduced HSD upliftment, refineries were simultaneously being pushed to increase jet fuel output to meet rising airport demand—an operational balance they warned will become increasingly untenable without normalised diesel offtake.
The letter cited Rule 35(g) of the Pakistan Oil (Refining, Blending, Transportation, Storage, and Marketing) Rules, 2016, which mandates prioritising locally produced petroleum products before allowing imports. The refineries alleged that excessive imports approved by Ogra had worsened the situation, leaving significant volumes of local fuel unsold.
Copies of the letter were also sent to the minister for energy (Petroleum Division), the petroleum secretary and the director-general (Oil), underscoring the gravity of the issue. The refineries urged Ogra to take immediate corrective measures to ensure timely and prioritised upliftment of local products, warning that swift intervention is essential to prevent disruptions in the country’s fuel supply chain.
Story by Tanveer Malik & Khalid Mustafa
