PSO Approves Five-Year Fuel Supply Agreement Renewal With Attock Refinery
Listen3 min
Read aloud by your device’s built-in synthetic voice, not a recording. Needs a browser that can read aloud.
✧ GENERATE BRIEFING
Pakistan State Oil Company Limited (PSO) has officially approved the five-year renewal of its Sale Purchase Agreement (SPA) with Attock Refinery Limited (ARL), effective retroactively from July 1, 2025, to June 30, 2030. The Third Addendum to the SPA establishes increased product volume allocations alongside strict technical, temperature, and joint-metering safeguards to eliminate measurement disputes and supply discrepancies.Key contractual, volumetric, and operational provisions include:Higher Volumetric Allocations: Minimum monthly motor gasoline (Mogas) allocations to PSO increase to 14,000–16,000 metric tonnes (up from 12,000–15,000 MT), MTT rises to 250–300 tonnes (up from 50–100 MT), and Jet A-1 aviation fuel is formalized at 9,000–11,000 tonnes monthly.Governance & Internal Approvals: Recommended by PSO’s Supply Chain Committee in November 2025 and endorsed by the Management Committee in February 2026, the final addendum received Board of Management authorization, empowering the CEO or designated officer to execute the agreement.
Pakistan State Oil (PSO) has approved the renewal of its Sale Purchase Agreement (SPA) with Attock Refinery Limited (ARL) for five years, from July 1, 2025, to June 30, 2030, with revised petroleum product allocations and stricter quality and quantity controls.
The third addendum to the agreement is intended to ensure continuity of fuel supplies from ARL while strengthening PSO’s commercial safeguards and reducing the risk of disputes over product quality and delivered volumes, according to a report by Business Recorder.
Under the revised terms, the minimum monthly allocation of motor gasoline to PSO will increase from 12,000–15,000 metric tonnes to 14,000–16,000 tonnes. The monthly allocation of MTT will also rise from 50–100 tonnes to 250–300 tonnes.
The agreement also establishes a monthly supply range of 9,000–11,000 tonnes for Jet A-1 aviation fuel, providing a defined allocation for the product.
The previous addendum expired on June 30, 2025. Following negotiations on commercial, operational and technical provisions, PSO’s Supply Chain Committee recommended the revised terms in November 2025, while the company’s Management Committee endorsed them in February 2026.
The Management Committee subsequently directed the Supply Function in March 2026 to submit the finalised addendum to the Board of Management for approval.
Beyond changes to supply allocations, the agreement introduces stricter procedures for monitoring petroleum product temperature, quality and quantity.
Products will be required to settle for at least 24 hours before delivery. Motor gasoline temperatures must remain 3–5 degrees Celsius below the product’s Initial Boiling Point, while white oil products, including high-speed diesel, kerosene, Jet A-1 and light diesel oil, must remain within five degrees Celsius above or below ambient temperature, based on readings at ARL’s pumping station.
The revised arrangement also standardises volumetric conversion to litres at 85 degrees Fahrenheit, using specified industry procedures. Jointly recorded tank dips, temperatures and densities will serve as the reference when discrepancies arise between tank measurements and custody-transfer meters.
ARL will also be required to keep delivery tanks sealed and dedicated to PSO until pumping is completed. PSO will be allowed to witness product sampling and have samples tested at its laboratory before loading.
Additional safeguards include independent meter verification every three months. A meter drift of plus or minus 0.25% will trigger reconciliation using tank measurements. Weighbridges must also carry valid independent calibration certificates, subject to annual endorsement by the relevant weights and measurement authority.
For high-speed diesel, ARL has separately confirmed that its flashpoint will remain within the historical range, which averaged 64 degrees Celsius during July 2024–June 2025.
PSO’s management expects the revised provisions to improve oversight of fuel deliveries, clarify procedures for resolving measurement differences and strengthen the reliability of its supply arrangement with ARL.
The board has authorised PSO’s chief executive officer, or a nominated officer, to sign the third addendum and finalise minor textual or other non-material adjustments required during execution.
