The federal government has barred private oil marketing companies from importing high-speed diesel, allowing only Pakistan State Oil to continue procurement.
The decision was taken during a recent meeting of the National Coordination and Management Council and will remain in place until the situation in the Middle East stabilizes, according to officials.
Under the new arrangement, private oil marketing companies seeking to import high-speed diesel must first obtain approval from the council, giving authorities greater oversight over import volumes and foreign exchange usage.
Officials described the move as a targeted intervention to manage Pakistan’s rising oil import bill, which remains one of the country’s largest sources of external payment pressure.
By centralizing diesel imports through PSO, the government aims to align fuel procurement more closely with available foreign exchange reserves and domestic demand projections.
The decision comes amid heightened regional tensions and volatility in global oil markets following instability linked to the Middle East and disruptions surrounding energy supply routes.
Industry stakeholders, however, expressed concerns over the policy shift. Executives from private oil marketing companies warned that restricting participation could affect supply chain efficiency and create logistical bottlenecks if fuel demand rises beyond PSO’s handling capacity.
Officials said the government has retained some flexibility in the policy, allowing private companies to seek special approval from the council in cases of urgent shortages or exceptional demand.
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