- Restrictions on private imports will be maintained until the Middle East stabilizes.
- Private OMCs must obtain approval from the NCMC to import high-speed diesel.
- This step introduces monitoring to manage currency usage volumes.
ISLAMABAD: The federal government has banned private oil marketing companies (OMCs) from importing high-speed diesel (HSD), allowing only Pakistan State Oil (PSO) to handle its purchases, in a bid 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 centralizes diesel imports under the authority of the public entity, News reported.
Officials say the restrictions will remain in effect 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 level of oversight, allowing authorities to regulate volumes and prioritize the use of currencies amid growing economic challenges.
Government sources described the move as a “targeted intervention” aimed at managing the growing oil import bill, which constitutes a significant portion of Pakistan’s total imports. By channeling diesel purchases through the PSO, policymakers aim to better align fuel imports with available foreign exchange reserves and domestic demand forecasts.
Industry players, however, view this development with caution. Private JI leaders warn that limiting participation could disrupt established supply chains and reduce market efficiency.
“Centralization can help control the import bill, but it risks creating logistical bottlenecks if demand exceeds PSO’s processing capacity,” said a senior industry official.
The government has left some room for flexibility. In case of acute shortage or urgent demand, private OMCs can present their case before the NCMC for permission to import.
