In response to low demand for High-Speed Diesel (HSD) from Oil Marketing Companies (OMCs), Attock Refinery Limited, a subsidiary of Attock Oil Company Limited, stated on Wednesday that it will temporarily scale back operations.
In a notice to the Pakistan Stock Exchange (PSX), the refinery informed the exchange of the event.
The HSD upliftment by OMCs from ARL has remained low over the past two months for a variety of reasons, including the potential influx of smuggled products in our supply envelope, ARL stated in a note.
The change occurs as Pakistan’s sales of petroleum products, which totaled 1.17 million tonnes in April but fell by 46%, are taking a hit. HSD volume fell by 50% YoY and reached 0.46 million in April 2023. Experts blamed rising oil prices, a slowing economy, and an increase in Iranian oil being smuggled as the causes of the decline.
The oil refinery in the meantime reported that there is now little to no ullage in storage tanks and a high level of HSD stocks in the refinery.
Because of this, the notification stated, “We are left with no choice but to go for shut down of our main distillation unit of 32,400 barrels per day (bpd) to manage the critically high HSD stocks and carry out essential maintenance including that of allied downstream units for a period of five (5) days.”
The company, which has grown to be the second-largest refinery in the nation, announced it will partially function at about 25% capacity throughout the said period.
“However, there are enough goods stocks on hand to suit the present needs. The notice stated that the Oil & Gas Regulatory Authority (OGRA) and the Ministry of Energy’s Petroleum Division had been informed in accordance.
