Attock Refinery shuts main crude unit as Islamabad security lockdown halts oil tankers

Apr 22, 2026 | Economy, Public Policy

ISLAMABAD (April 22, 2026) — Attock Refinery Limited (ARL), the primary fuel supplier for northern Pakistan, has been forced to shut down its main crude distillation unit due to a total suspension of oil tanker movement. The closure of key transit routes—implemented as security measures for the anticipated US-Iran peace talks—has paralyzed the refinery’s ability to receive crude oil or dispatch refined products.

Attock Refinery shuts main crude unit as Islamabad security lockdown halts oil tankers

Impact on Energy Infrastructure

  • The main crude distillation plant, with a capacity of 32,400 barrels per day, is offline until traffic restrictions are lifted.
  • ARL reported to the Pakistan Stock Exchange (PSX) that it can no longer send out petrol (MS) or diesel (HSD), leading to a dangerous buildup of inventories.
  • The refinery is the sole provider for central and northern Punjab, Khyber Pakhtunkhwa (KP), Azad Jammu and Kashmir (AJK), and Gilgit-Baltistan.
  • Sources warn that crude production in Jhelum, Attock, and several fields in KP may have to be halted, potentially causing long-term structural damage to the wells.

A Critical Disruption for Aviation and Defense

In urgent letters to the Petroleum Division and OGRA, ARL management highlighted the severe implications of the lockdown, which is scheduled to last until at least April 26.

Aviation: ARL provides the primary supply of jet fuel to Islamabad and Peshawar airports.

Defense: The refinery is a vital fuel link for the armed forces’ operational requirements in the northern region.

Power Sector: The suspension also affects the supply of furnace oil to Independent Power Producers (IPPs), threatening to worsen regional power shortages.

Timing and Economic Consequences

The shutdown comes at a particularly ironic time for the energy sector. Just last week, the government celebrated commercial production from the country’s largest new oil discovery in Kohat (Nashpa Block). This field, contributing 10% of the national crude output, relies entirely on ARL for refining.

While the refinery had requested “right of way” for its tankers as an essential service, the request was denied due to the extraordinary security protocols surrounding the “Islamabad Talks 2.0.” With tankers blocked and storage tanks reaching maximum capacity, the energy sector now faces a race against time to prevent a wider regional fuel shortage.

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