Friday, April 18, 2025

Pakistan Jet Fuel Shortage Disrupting Defense Sector and Oil Refineries

Pakistan jet fuel shortage has disrupted the defense sector, as only 58 % of their committed JP-8 volumes were delivered by oil refineries in the first nine months of financial year 2024. The commitment in JP-8 is to ensure reliable, consistent and high-quality fuel for military aircrafts and equipment

ARL (Attock Refinery Limited) only delivered 85% of its committed JP-8, PARCO (Pak-Arab Refinery Limited) supplied 70%, PRL (Pakistan Refinery Limited) supplied 52%, ENAR (ENAR Petroleum Refining Facility) delivered 44 %, NRL (National Refinery Limited) delivered 25.5%, and lastly, Cnergyico (formerly Byco) supplied 25%.

A key defense entity has asked OGRA (Oil and Gas Regulatory Authority) to ensure compliance from local refineries; none of them fulfilled their JP-8 committed supply from July to March. The government and OGRA , in response, have instructed all refineries to fulfill their contracted requirements.

The most compliant ARL cited the draining of northern oil fields and gas supply disposed of by SNGPL (Sui Northern Gas Pipelines Limited) for its lowered capacity. It has requested again the equal distribution of 5,000 barrels per day from southern oil fields currently being exported.

ARL also reported that due to strikes and security issues in Khyber Pakhtunkhwa , there is a constant disruption in condensate. Along with other refineries, alerted about high demand for smuggled petroleum products amid declining utilization.

PARCO also reported that as diesel inventories hit record levels, the more jet fuel production is affected, relying on imported oil and lower purchases by oil marketing companies. Now storage is full. However, many refineries blamed OGRA’s relaxed import policy, which favors selective oil marketing companies importing their finished products, for decreasing the demand for locally refined fuels and forcing shutdowns.

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