OGRA Asks Oil Marketing Companies to Rescue Attock Refinery

The Oil and Gas Regulatory Authority (OGRA) has instructed oil marketing companies to ease the inventory crisis of Attock Refinery Limited (PSX: ATRL) by more frequently lifting Motor Spirit (MS) petrol and High-Speed Diesel (HSD) from the country’s oldest refinery. Due to excessive stockpiles of MS and HSD, ATRL shut down two of its crude distillation units on December 11 and lowered throughput to 60 percent of its capacity. The company will be unable to use crude oil from multiple fields if the shutdown continues, reported a national daily. 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. ATRL was losing Rs. 700 million every month, prompting OGRA to take action. This not only resulted in forex losses but also raised consumer costs because of IFEM subsidies for imported fuel (which OMCs preferred for big gains) and higher freight expenses. The authority arranged a meeting with OMCs and ATRL’s top management on December 12, 2023, instructing them to comply with regulations and enhance their use of the refinery’s fuel inventory. Energy Minister Muhammad Ali took notice of the matter and assured OGRA that he would keep an eye on the situation. OGRA will now monitor the rate of ATRL product adoption and make sure all OMCs are adhering to its instructions.