The government is considering shutting down all except two refineries for a while after oil and gas companies have cut production across the country, the production cut, a price war between Russia and Saudi Arabia and the icing on the cake is Coronavirus crisis. The two refineries that would remain functional include Attock Refinery Limited and Pak Arab Refinery Limited. The other three refineries are considering a decision to close for at least two months.
The refinery closures being considered for some time due to the drop in demand for oil products across the country as a result of the Coronavirus outbreak, which has halted economic activity in Pakistan as well as worldwide.
Among the two refineries that are currently under consideration for production, Parco uses imported and local crude oil, while the Attock refinery mostly relies on local crude oil. The refineries and Bico have already announced their suspension of production. Sources told that the Petroleum Division has prepared a summary regarding the closure of other refineries and will be presented at the Cabinet Energy Committee meeting on Thursday.