Govt to ensure crude supply to ARL, likely to set freight at Rs1,490 per barrel

ISLAMABAD: The Petroleum Division has moved to resolve long-standing issues impeding the supply of 5,000 barrels per day (BPD) of crude oil from the Naimat oilfield in Sindh to Attock Refinery Limited (ARL) in Rawalpindi.

Although, the Division forwarded a summary to the Economic Coordination Committee (ECC), the matter was not taken up in the committee’s meeting on Tuesday. It is now expected to be tabled at the ECC’s next session. According to the summary, the government is likely to fix ARL’s freight charges at Rs1,490 per barrel for the transportation of condensate (crude oil) from United Energy Pakistan’s (UEP) Naimat field. The ECC had already approved allocation of this crude to ARL in February 2024 to enhance production of High-Speed Diesel (HSD) and JP-8 jet fuel for the armed forces.

The urgency of the matter was underscored in a letter from the Director General (DG) Oil on April 23, 2025, directing refineries to ramp up production of HSD and JP-8 for military needs. In response, the ARL requested prompt approval of freight charges to maintain optimal refinery throughput amid declining local crude output.

ARL’s letter, dated April 25, noted that crude oil production from northern fields has fallen to around 39,000 BPD, far below ARL’s refining capacity of 53,400 BPD, forcing the plant to operate at reduced capacity.