KARACHI: Pakistan imported 2.03 million metric tonnes (MT) of high-speed diesel (HSD) during the fiscal year ending June 30, 2025—200,000 MT more than the previous year—despite ample domestic refining capacity, prompting concerns of over-importation.
Industry stakeholders have flagged the increase as unnecessary, noting that local refineries can meet 60–65% of the country’s diesel needs. According to sector data, the highest monthly import—306,000 MT—occurred in December, even though local production and PSO’s long-term import agreements were sufficient to meet demand.
Sources alleged that a specific oil marketing company (OMC) was allowed to import diesel in January, despite low demand and full storage tanks at refineries. This reportedly disrupted local refinery operations, causing reduced throughput and temporary shutdowns.
An earlier surge in demand during October and November was attributed to a government crackdown on smuggled diesel. However, the Oil and Gas Regulatory Authority (Ogra) allegedly allowed further imports in January, exacerbating the supply-demand mismatch. Imports briefly ceased in May but rose again in June following the Iran border closure due to regional conflict.
Adil Khattak, Chairman of the Oil Companies Advisory Council (OCAC), stressed that while imports are necessary to supplement local supply, they must be aligned with accurate demand forecasting. He cited Clause 35(G) of the Petroleum Rules, which permits imports only when local refineries cannot meet demand.
Khattak also pointed out that Ogra’s monthly product review meetings are meant to balance imports and domestic supply, but decisions are sometimes influenced by external pressure.
A government-formed committee to investigate the over-imports has yet to release findings, while a second committee is still finalizing its report.
