ISLAMABAD: In an effort to tighten control over fuel imports and reduce pressure on Pakistan’s external account, the federal government has barred private oil marketing companies (OMCs) from importing high-speed diesel (HSD), allowing only state-owned Pakistan State Oil (PSO) to continue diesel procurement.
The decision was taken during a recent meeting of the National Coordination and Management Council (NCMC), effectively centralising HSD imports under PSO. Officials said the restriction would remain in place until stability returns to the Middle East, where ongoing tensions have contributed to volatility in global oil markets.
Under the new policy, private OMCs will require prior approval from the NCMC to import HSD. The additional oversight mechanism is intended to help authorities regulate import volumes and manage foreign exchange utilisation more effectively amid growing economic challenges.
Government sources described the measure as a targeted intervention aimed at controlling the country’s rising oil import bill, which accounts for a major share of Pakistan’s total imports. By routing diesel imports through PSO, policymakers hope to align fuel procurement more closely with available foreign exchange reserves and projected domestic demand.
However, industry stakeholders have expressed concerns over the move, warning that limiting the role of private OMCs could disrupt existing supply chains and reduce market efficiency.
A senior industry official said that while centralisation may help contain the import bill, it could also create logistical bottlenecks if fuel demand exceeds PSO’s operational capacity.
Despite the restrictions, the government has retained some flexibility in the policy. In cases of severe shortages or urgent market requirements, private OMCs may approach the NCMC to seek special permission for importing diesel cargoes.
Story by Khalid Mustafa
