According to its most recent notice to the Pakistan Stock Exchange, Pakistan Refinery Limited would be closed for roughly twenty days beginning on December 10. This is due to the shutdown of the company’s refining units for regeneration.
Pakistan Refinery Limited, a subsidiary of PSO, is one of the state-owned oil refineries in Pakistan. PRL has the capacity to refine 50,000 barrels per day (bpd) of crude oil between its two refineries.
According to media sources, the Oil and Gas Regulatory Authority (OGRA) has authorised PRL to postpone its shutdown until February 2023. Due of the strong demand for diesel during the present winter months, OGRA argued that the business should cease operations once the demand surge subsides. The decision was taken after the Oil Supply Chain Department of OGRA assessed the company’s shutdown request.
Regeneration is a vital component of any refinery’s life cycle. It not only improves extraction, but also has favourable environmental effects. Nonetheless, it is an occurrence that can be delayed. OGRA and the Petroleum Ministry denied OCAC’s claim that there may be a diesel shortage in the future months, which OCAC reported to OGRA at the beginning of last month. However, the closure of PRL will result in a decrease of over 40,000 metric tonnes of diesel that would have been added to the stream.
While Pakistan has a scarcity of foreign reserves and the state bank is resolute about not giving Letters of Credit to domestic importers. If this gap grows large, it would be essential to determine the diesel importation strategy. The petroleum ministry is now convinced that Pakistan’s reserves are more than adequate for the winter season.