KARACHI: The government has allowed Pakistan State Oil (PSO), the state-owned oil marketing company, to import 45,000 metric tonnes (MT) of high-speed diesel (HSD) for September.
The approval was granted by the Oil and Gas Regulatory Authority (Ogra) during a recent product review meeting (PRM) convened to assess the country’s petroleum demand and supply situation.
Industry sources said PSO had initially sought permission to import 100,000MT of HSD, but was allowed less than half that amount, as local production was deemed sufficient to meet demand. PSO imports HSD under a long-term contract with Kuwait Petroleum Corporation (KPC).
Ogra, however, did not permit private-sector oil marketing company ‘GO’ to import HSD, citing that local production and PSO’s imports would adequately cover domestic requirements for the month.
Pakistan imported 2.03 million MT of HSD in the financial year ending June 30, 2025, up 200,000 MT from the 1.83 million MT brought in the previous year. The higher import volumes sparked disputes between the regulator, refineries and OMCs, particularly one private-sector company.
Industry officials noted that the prime minister had formed a committee to investigate the excess imports, but it failed to produce any findings. “Another committee was later constituted and is still working to finalise its report on whether these imports were necessary in the last financial year,” they added.
During a meeting of the committee this month, Ogra informed members that it had drafted PRM regulations under the Oil Rules 2016. The draft incorporates take-or-pay (TOP) agreements and mandates compliance from refineries, OMCs and importers.
The proposed framework sets out mechanisms for demand-supply analysis, import quota adjustments and enforcement measures backed by penalties. Under the draft rules, monthly PRM meetings would be scheduled for the second Thursday and Friday of each month, with a fixed calendar to ensure stakeholder attendance.
Industry officials said refineries generally have no objection to imports, but disputes arise when their storage tanks are full and additional shipments are approved. They acknowledged that PSO imports are understandable under its contract with KPC, but private-sector imports have been a source of contention.
