Private oil firms blocked from HSD imports amid forex pressure

ISLAMABAD: The federal government has barred private oil marketing companies from importing high-speed diesel (HSD), handing exclusive procurement authority to Pakistan State Oil (PSO) under a new centralized import policy aimed at managing fuel supplies and easing pressure on foreign exchange reserves.

According to officials, the decision was taken during a recent meeting of the National Coordination and Management Council and will remain effective until the situation in the Middle East stabilizes.

Under the revised arrangement, private oil marketing companies will now require prior approval from the council before importing high-speed diesel, giving the government tighter oversight over import volumes, fuel availability, and foreign currency utilization.

Officials said the move is part of a broader strategy to control Pakistan’s rising oil import bill, which continues to place a significant strain on the country’s external account amid ongoing volatility in international energy markets.

By routing diesel imports through PSO, authorities aim to streamline procurement, ensure coordinated supply management, and align fuel imports with the country’s available foreign exchange reserves and domestic consumption needs.

The policy shift comes against the backdrop of escalating tensions in the Middle East and uncertainty surrounding global oil supply routes, particularly in the Gulf region, where fears of disruptions have intensified concerns over energy security.

However, industry stakeholders have raised reservations over the decision, warning that limiting private sector participation could reduce competition, affect supply chain efficiency, and potentially create logistical bottlenecks if fuel demand rises beyond PSO’s handling capacity.

Officials maintained that some flexibility has been retained in the framework, allowing private companies to seek special permission from the council in cases of emergency shortages or exceptional market demand.