The federal government has introduced a major change to Pakistan’s fuel import policy by making Pakistan State Oil (PSO) the country’s exclusive importer of high-speed diesel (HSD) for the fiscal year 2026-27.
Under the new decision, private oil marketing companies (OMCs) will no longer be allowed to import diesel. However, they can continue importing petrol after obtaining prior approval from the Oil and Gas Regulatory Authority (OGRA).
The policy aims to streamline diesel imports while strengthening fuel supply management across the country. At the same time, the government has introduced stricter rules governing petrol imports and fuel pricing.
Private OMCs Can Still Import Petrol
Although diesel imports have been restricted to PSO, private OMCs may continue importing petrol under specific conditions.
Before importing petrol, every company must secure approval from OGRA. Furthermore, import allocations will depend on each company’s historical market share under the existing monthly product review mechanism.
The minimum cargo size for approved petrol imports has been fixed at 10,000 tons.
Stricter Rules for Petrol Importers
The revised policy also introduces tougher compliance requirements for private oil marketing companies.
Companies that fail to import their approved petrol quantities within the prescribed timeframe may face penalties. Similarly, firms that do not lift their committed fuel supplies from local refineries will lose their import allocation for the following nine months.
As a result, authorities expect companies to meet both their import commitments and refinery obligations more consistently.
Long-Term Petrol Supply Agreement Planned
Besides revising import rules, the federal cabinet has directed PSO to enter a long-term petrol supply arrangement with OQ Trading of Oman.
The agreement is intended to strengthen Pakistan’s long-term fuel security and ensure a more stable supply of petroleum products.
Officials believe that long-term procurement arrangements could reduce supply disruptions and improve fuel availability in the future.
Daily Fuel Pricing Mechanism Introduced
The government has also approved significant changes to Pakistan’s fuel pricing system.
Under the revised mechanism, OGRA will calculate petrol and diesel prices every day. The authority will publish updated ex-depot prices daily on its official platform without requiring approval from the federal government.
This change marks a departure from the previous pricing mechanism and is expected to make fuel price adjustments more responsive to market conditions.
How Fuel Prices Will Be Calculated
The revised pricing formula will continue using PSO’s actual import premiums as the benchmark for calculating domestic fuel prices.
If PSO does not import petrol during a seven-day pricing period, OGRA will instead use the calendar year-to-date average import premium or the premium agreed under a long-term supply arrangement.
The same pricing formula will also apply to diesel whenever necessary.
Policy Aims to Strengthen Fuel Supply
The latest decisions represent a significant shift in Pakistan’s petroleum import and pricing framework.
By assigning diesel imports exclusively to PSO, tightening petrol import regulations, and introducing daily fuel price calculations, the government seeks to improve supply management and enhance fuel security.
Meanwhile, private oil marketing companies will continue participating in petrol imports under stricter regulatory oversight, while PSO will play a larger role in ensuring uninterrupted diesel supplies across the country.
