Attock Refinery Limited (ARL) has been forced to shut down its plant due to ongoing smuggling of petroleum products from neighboring countries.
The refinery announced on Wednesday that oil marketing companies (OMCs) had been slow to uplift High Speed Diesel (HSD) from ARL in recent months, “due to the possibility of smuggled products entering the supply envelope.”
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This has led to a buildup of HSD stocks at the refinery, with very little or no space available in storage tanks.
As a result, ARL has been left with no choice but to shut down its main distillation unit, which has a capacity of 32,400 barrels per day (BPD), for a period of five days. During this time, the refinery will partially operate at around 25% capacity to carry out essential maintenance work on its downstream units. The company has assured stakeholders that adequate inventories of products are available to meet current requirements.
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The situation has been reported to the Ministry of Energy (Petroleum Division) and the Oil and Gas Regulatory Authority (OGRA). However, it is unclear whether this action will put a stop to the smuggling of petroleum products, which has been a long-standing issue for Pakistan.
This illegal trade has a significant impact on the country’s economy, as it leads to revenue losses for the government and causes damage to domestic industries.
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In recent years, Pakistan has taken various measures to combat smuggling, including strengthening border controls and increasing penalties for those caught engaging in the illegal trade. However, these efforts have not been entirely successful, and smuggling remains a persistent problem.
The closure of ARL’s plant highlights the urgent need for more effective measures to be taken to address this issue and ensure the smooth functioning of the country’s oil industry.
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