Pakistan’s Defence Sector Faces Serious Shortage of Jet Fuel as Supply Crisis Hits Local Refineries

Jet fuel supplies to the defence sector have been disrupted as domestic oil refineries delivered only 58 percent of their committed JP-8 volumes in the first nine months of FY24. A key defence entity has asked the Oil & Gas Regulatory Authority (OGRA) to ensure compliance from local refineries, none of which met their JP-8 supply commitments between July and March. In response, the government and Ogra have directed all refineries to fulfil their contracted obligations, reported Dawn. Refineries, however, blamed reduced operations on OGRA’s relaxed import policy, which favours select oil marketing companies importing finished products, lowering demand for locally refined fuels and forcing shutdowns. Attock Refinery Limited (ARL) supplied 85 percent of its JP-8 commitment, Pak – Arab Refinery Limited (PARCO) 70 percent, Pakistan Refinery Limited (PRL) 52 percent, ENAR Petroleum Refining Facility (ENAR) 44 percent, National Refinery Limited (NRL) 25.5 percent, and Cnergyico (formerly Byco) 25 percent. ARL, the most compliant, cited depleted northern oilfields and gas supply cuts by SNGPL for its reduced capacity. It has again requested reallocation of 5,000 barrels per day from southern fields currently being exported. ARL also reported frequent disruptions in condensate from Khyber Pakhtunkhwa due to strikes and security issues. It, along with other refineries, warned of declining utilization amid growing inflows of smuggled petroleum products. Parco reported jet fuel production was impacted as its diesel inventories hit record levels, with storage full due to reduced purchases by oil marketing companies relying on imported fuel.