- The restriction on private imports will remain in place until the Middle East stabilizes.
- Private OMCs must obtain approval from the NCMC to import high-speed diesel.
- Step introduces monitoring to manage currency usage volumes.
ISLAMABAD: The federal government has restricted private oil marketing companies (OMCs) from importing high speed diesel (HSD), allowing only Pakistan State Oil (PSO) to undertake its procurement, in a move aimed at strengthening control over fuel imports and reducing pressure on the external account.
The decision, taken at a recent meeting of the National Coordination and Management Council (NCMC), effectively centralizes diesel imports under the state entity. The news reported.
Officials say the restriction will remain in place until the situation in the Middle East stabilizes, a factor that has contributed to volatility in global oil markets.
Under the new agreement, private OMCs wishing to import HSD must obtain prior approval from the NCMC. This introduces an additional layer of oversight, allowing authorities to regulate volumes and prioritize currency utilization amid growing economic challenges.
Government sources described the move as a “selective intervention” to manage the rising oil import bill, which constitutes a major chunk of Pakistan’s total imports. By channeling diesel procurement through OSP, policymakers aim to better align fuel imports with available foreign exchange reserves and domestic demand forecasts.
Sector actors, however, view this evolution with caution. Executives at private OMCs warn that limiting participation could disrupt established supply chains and reduce market efficiency.
“Centralization can help control the import bill, but risks creating logistical bottlenecks if demand exceeds 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 to the NCMC for permission for imports.
