The federal government has made Pakistan State Oil (PSO) the country’s sole importer of high-speed diesel (HSD) for fiscal year 2026-27, banning private oil marketing companies (OMCs) from importing the fuel.
While private OMCs can no longer import diesel, they will still be allowed to import petrol with prior approval from the Oil and Gas Regulatory Authority (OGRA).
Import allocations will be based on each company’s historical market share through the existing monthly product review mechanism, with a minimum cargo size of 10,000 tons.
OMCs that fail to import approved petrol volumes on time or do not lift committed supplies from local refineries will lose their import allocation for the next nine months.
The cabinet has also directed PSO to enter a long-term petrol supply arrangement with OQ Trading of Oman to strengthen Pakistan’s fuel security.
Under the revised pricing mechanism, OGRA will calculate petrol and diesel prices daily and publish daily ex-depot prices on its official website without requiring approval from the federal government.
PSO’s actual import premiums will remain the benchmark for calculating local fuel prices. If PSO has not imported petrol during the seven-day pricing period, OGRA will use calendar year-to-date averages or the premium under a long-term supply agreement. Same formula for diesel.
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