KARACHI: The federal government has restricted private oil marketing companies (OMCs) from importing high-speed diesel (HSD), permitting only Pakistan State Oil (PSO) to handle its procurement, in a move intended to strengthen control over fuel imports and reduce pressure on the external account.
The decision, taken at a recent meeting of the National Coordination and Management Council (NCMC), effectively centralises diesel imports under the state-run entity.
Officials say the restriction will remain in place until the situation in the Middle East stabilises, a factor that has contributed to volatility in global oil markets.
Under the new arrangement, private OMCs seeking to import HSD must obtain prior approval from the NCMC. This introduces an additional layer of oversight, enabling authorities to regulate volumes and prioritise foreign exchange utilisation amid mounting economic challenges.
Government sources described the move as a “targeted intervention” to manage the rising oil import bill, which constitutes a significant portion of Pakistan’s total imports. By channelling diesel procurement through PSO, policymakers aim to better align fuel imports with available foreign reserves and domestic demand forecasts.
Industry stakeholders, however, view the development with caution. Executives from private OMCs warn that limiting participation could disrupt established supply chains and reduce market efficiency.
“Centralisation may help control the import bill, but it risks creating logistical bottlenecks if demand outpaces PSO’s handling capacity,” said a senior industry official.
The government has left room for flexibility. In cases of acute shortage or urgent demand, private OMCs can present their case before the NCMC to secure permission for imports.
