- Restrictions on private imports will remain until the Middle East stabilizes.
- Private OMCs need NCMC approval to import high speed diesel.
- Steps introduce oversight to manage volumes of currency use.
ISLAMABAD: The federal government has restricted private oil marketing companies (OMCs) from importing high-speed diesel (HSD), allowing only Pakistan State Oil (PSO) to handle their purchases, in a move aimed at strengthening control over fuel imports and reducing 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 state-run entity, The news reported.
Officials say the restriction will remain in place until the situation in the Middle East stabilizes, a factor that has contributed to volatility in global oil markets.
Under the new scheme, private OMCs wishing to import HSD will have to obtain prior approval from the NCMC. This introduces an extra layer of oversight that allows authorities to regulate volumes and prioritize currency utilization amid mounting economic challenges.
Government sources described the move as a “targeted intervention” to manage the rising 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 reserves and domestic demand forecasts.
However, the industry’s stakeholders view the development cautiously. Executives from private OMCs 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 the PSO’s handling capacity,” said a senior industry official.
The government has left room for flexibility. In case of acute shortage or acute demand, private OMCs can present their case to the NCMC to secure permission to import.
