ISLAMABAD – Pakistani government restricted private oil marketing companies from independently importing high-speed diesel, handing full import control to Pakistan State Oil (PSO) under a newly centralized system.
The move comes at a time of rising global oil market volatility and escalating tensions in the Middle East, which authorities say have disrupted supply chains and increased pressure on Pakistan’s already strained foreign exchange reserves. According to officials, the decision was finalized during a recent meeting of the National Coordination and Management Council, and will remain in force until stability returns to the Middle East.
Under the new arrangement, PSO becomes the sole importer of high-speed diesel, Private oil marketing companies are no longer allowed to import diesel independently while Any private import now requires prior approval from the council.
Officials said this step gives the government tighter control over fuel inflows, import planning, and foreign currency usage. Authorities describe the policy as a strategic intervention to manage Pakistan’s rising oil import bill, which continues to be one of the biggest drains on foreign exchange reserves.
By centralizing diesel imports through PSO, the government aims to better align imports with actual domestic demand, Control foreign exchange outflows and to Stabilize fuel supply planning under constrained reserves.
The decision has been taken against the backdrop of ongoing instability in the Middle East , Volatility in international oil prices, disruptions in global energy shipping routes. Officials said these external pressures have made centralized control necessary to avoid supply shocks.
The policy shift triggered concern within the oil industry, with stakeholders warning that removing private sector participation could reduce supply chain efficiency, create logistical bottlenecks, and increase the risk of shortages if demand exceeds PSO’s capacity
Industry players fear that reliance on a single importer may strain the system during high-demand periods.
Despite the strict framework, officials clarified that some flexibility has been retained. Private oil marketing companies may still apply for special approval from the council. Request permission in cases of urgent shortages or exceptional demand. However, approvals will be tightly controlled under the new oversight mechanism.
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