The federal government has restricted private oil marketing companies from importing high-speed diesel, allowing only Pakistan State Oil to manage fuel procurement under a new policy framework. Officials introduced the decision to strengthen oversight of fuel imports, reduce pressure on foreign exchange reserves, and improve control over rising oil-related expenditures during ongoing economic challenges.
The decision was finalised during a recent meeting of the National Coordination and Management Council, where authorities discussed concerns surrounding volatile global oil prices and regional uncertainty. Officials stated that the restriction would remain effective until the Middle East situation becomes more stable, as continued tensions have increased unpredictability in international fuel markets and import costs.
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Under the revised arrangement, private oil marketing companies must first seek approval from the National Coordination and Management Council before importing high-speed diesel into the country. Through this additional monitoring process, the government aims to regulate import volumes carefully while ensuring foreign exchange resources are utilised according to national fuel demand and economic priorities.
Furthermore, government officials described the move as a targeted measure designed to manage Pakistan’s growing oil import bill, which continues consuming a significant share of the country’s total imports. Policymakers believe centralising diesel procurement through Pakistan State Oil will help authorities align fuel purchases more effectively with available foreign reserves and projected domestic energy requirements.
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However, several industry stakeholders expressed concerns over the policy and warned that limiting private sector participation could affect market efficiency and disrupt established supply chains. Some executives argued that depending mainly on one state-owned company may increase the risk of logistical delays, especially if fuel demand rises beyond Pakistan State Oil’s operational handling capacity.
Despite the restrictions, the government has allowed flexibility in emergency situations where immediate fuel imports may become necessary to avoid shortages across the country. In such cases, private oil marketing companies can approach the National Coordination and Management Council directly to request special permission for importing high-speed diesel under urgent market conditions.