Attock Refinery Shuts Down 2 Plants As Low Demand Causes Massive Fuel Stockpile

Attock Refinery Limited (PSX: ATRL) has temporarily closed two of its crude distillation units to manage refinery operations as low demand has caused a massive stockpile of Premier Motor Gasoline (PMG) and High-Speed Diesel (HSD), the company informed the Pakistan Stock Exchange on Tuesday. “To manage high stocks of these products, we have shut down two of our crude distillation units temporarily to manage refinery operations. Accordingly, we would now be opening at a throughput of about 60 percent. This if continues would result in curtailment of crude intake from oilfields with an adverse effect on associated gas as well,” the filing stated. “It has also been intimated to OGRA that surplus inventories of products are available to meet the market demand,” it added. ATRL in its request to OGRA and Energy Division urged the importance of directing OMCs to uplift and prioritise its local product over imports or other sources in the supply envelope so that the refinery could operate at peak throughput. In an earlier letter written on December 07, 2023, ATRL stated that it was facing serious challenges in disposing of its petrol and diesel production due to poor upliftment by OMCs, who preferred selling imported products to earn more profits from IFEM charges. The ATRL management requested immediate action against the OMCs. Meanwhile, in its other letter to the Energy Division, ATRL requested to allocate 5,000 barrels per day of condensate crude oil from Sindh fields that are currently being exported, but the proposal has yet to be implemented. ATRL is principally engaged in the refining of crude oil. The Company is a subsidiary of The Attock Oil Company Limited, England, and its ultimate parent is Coral Holding Limited (a private limited company incorporated in Malta).