Govt bars private OMCs from diesel imports, gives PSO sole authority

The federal government has barred private oil marketing companies (OMCs) from independently importing high-speed diesel (HSD), granting sole authority for diesel procurement to the Pakistan State Oil. The decision was taken during a recent meeting of the National Coordination and Management Council (NCMC), effectively placing diesel imports under the control of the state-owned oil company. According to the media reports, the temporary restriction will remain in effect until conditions in the Middle East improve, amid continued uncertainty and fluctuations in international oil markets. Under the revised policy, private OMCs will now require prior approval from the NCMC before importing HSD. Authorities say the additional scrutiny is intended to help regulate import volumes and ensure more careful use of foreign exchange reserves at a time of growing economic strain. Government officials described the measure as a focused step aimed at controlling the country’s rising petroleum import costs, which account for a major share of Pakistan’s overall import bill. By routing diesel imports through PSO, policymakers hope to better coordinate fuel purchases with available foreign currency reserves and projected domestic demand. However, representatives from the private oil sector have expressed concerns over the move, warning that limiting private participation could affect supply chain efficiency and disrupt market operations. A senior industry official said that while centralising imports may help contain the import bill, it could also create logistical challenges if fuel demand exceeds PSO’s operational capacity. The government has nonetheless kept provisions for exceptions. In the event of severe shortages or urgent market requirements, private OMCs may approach the NCMC to seek permission for diesel imports.