Pakistan’s Defence Sector Faces Serious Shortage of Jet Fuel as Supply Crisis Hits Local Refineries
In the first nine months of FY24, domestic oil refineries only produced 58% of their pledged JP-8 volumes, disrupting jet fuel supply to the defense sector.
Since none of the local refineries fulfilled their JP-8 supply obligations between July and March, a significant defense entity has requested that the Oil & Gas Regulatory Authority (OGRA) enforce compliance. According to Dawn, the government and Ogra have responded by ordering all refineries to fulfill their contractual duties.
However, refineries attributed the shutdowns to OGRA’s lenient import policy, which favors a few oil marketing corporations importing completed goods, hence decreasing demand for locally refined fuels.
Attock Refinery Limited (ARL) accounted for 85% of its JP-8 commitment, followed by Pak-Arab Refinery Limited (PARCO) at 70%, Pakistan Refinery Limited (PRL) at 52%, and ENAR at 44%.
Due to strikes and security concerns, ARL also stated that condensate from Khyber Pakhtunkhwa was frequently disrupted. Together with other refineries, it issued a warning about dwindling usage as illicit petroleum product inflows increased.
Due to a decrease in purchases by oil marketing businesses that depend on imported fuel, Parco’s diesel inventories reached record levels, impacting jet fuel production.
