Local oil refining companies in distress as demand reduced amongst nationwide lock down
Local Oil Refineries are in distress as the demand for the oil has fallen due to the lockdown. The COVID-19 crisis has put the world into an emergency situation and all the people are forced to stay at their homes. When the people are not utilizing the oil then the demand for the oil has automatically fallen. Some oil refineries have shut down the operations of the refineries while the others are operating partially. The Government has given advice to the Oil Marketing Companies to procure the oil from the local refineries but they didn’t listen to the advice. That’s why the oil refineries are going towards shutdown
In this crucial time when there is an international crisis due to Coronavirus, the local oil refining companies are facing distress. The local oil refineries in Pakistan are in trouble as the demand falls due to the lockdown.
Moreover, the Government has restricted the import of crude oil. The Government had asked the Oil marketing companies to get oil from the local refineries. So that the local companies are not forced to get out of the business. But the OMCs ignored the message of the Government.
The News reported on Tuesday that Attock Refinery Limited has closed down its one of the largest plants which were refining thousands of barrels oil per day. The facts say that 26000 barrels of crude oil per day. The Attock Refinery did so because of the low uplift by oil marketing companies.
Top management of Attock Refinery Limited wrote a letter to the Secretary of Petroleum Mr. Mian Asad that the Oil Marketing Companies are not purchasing from their refinery and this action forced them to close the plant.
According to the letter, Attock Refinery Limited is operating the smaller plants partially to refine 12 to 13 thousand barrels per day. These smaller units were closed down earlier as reported by The News.
In the letter of Attock Refinery Limited, it is warned that if the company has to do shutdown than the local oil fields will get an adverse effect.
However, the PARCO Pak Arab Refinery which was shutdown is allowed to open and run operations of the refinery at its minimum capacity. Because when there is no demand, then there is no need to fully operate the refineries.
National Refinery Limited also shut down its refinery due to the fall in the demand and there is a fear that the shutdown of refineries will provide great damage to the local oil fields.
The Government suggested the OMCs to take the refined oil from the local refineries to meet the demand of the northern areas but it seems that the OMCs have fully ignored the government’s advice.
On the other hand, Byco Refining Complex has put its refining operation on cold circulation and they anticipated that the demand will rise. That’s why the Byco Refining Complex did not choose to totally shut down the operations.
The Byco Company appreciated the step of the Government to use the local crude oil in this coronavirus crisis. The Commercial Vice President of Byco Refining Limited mentioned that the company stands with the nation in this difficult time. And we hope that we will emerge as a strong Pakistani nation.