Key Takeaways
- Pakistan State Oil (PSO) will be the exclusive importer of high-speed diesel for fiscal year 2026-27.
- Private oil marketing companies (OMCs) are banned from importing diesel but can still import petrol with approval.
- A new pricing mechanism will see daily ex-depot prices published by OGRA without government approval.
The federal government has announced that Pakistan State Oil (PSO) will be the sole importer of high-speed diesel for fiscal year 2026-27, effectively banning private oil marketing companies (OMCs) from importing this fuel. The decision aims to streamline import processes and enhance fuel security.
While PSO will have exclusive rights to import HSD, OMCs will still be permitted to import petrol with prior approval from the Oil and Gas Regulatory Authority (OGRA). This move is part of a broader strategy to ensure consistent supply chains and reduce dependency on multiple importers.
Import allocations for both diesel and petrol will be based on each company’s historical market share through an existing monthly product review mechanism. A minimum cargo size of 10,000 tons has been set as the threshold for importation. Companies that fail to meet their committed volumes or do not lift supplies from local refineries within the stipulated time frame will face penalties, including a loss of import allocation for the next nine months.
To bolster Pakistan’s fuel security, PSO has also entered into a long-term petrol supply agreement with OQ Trading of Oman. This partnership is expected to provide additional stability and reliability in the country's fuel market.
Under the revised pricing mechanism, daily ex-depot prices for both petrol and diesel will be calculated by OGRA based on actual import premiums. These prices will be published on the authority’s official website without requiring approval from the federal government. If PSO fails to import petrol during a seven-day period, OGRA will use calendar year-to-date averages or the premium under the long-term supply agreement as the benchmark for pricing.
The new system is designed to ensure transparency and reduce administrative delays in fuel pricing, making it more responsive to market conditions. This move also aims to align local fuel prices with international benchmarks, ensuring fairer pricing for consumers.
This decision reflects a concerted effort by the government to centralize control over critical energy imports and streamline operations within the oil sector. The measures are expected to improve efficiency and reduce the risk of supply disruptions.
