Pakistan State Oil to be sole diesel importer in FY27

Pakistan's government has implemented a significant policy shift, granting the state-owned Pakistan State Oil (PSO) exclusive rights to import high-speed diesel (HSD) for the fiscal year 2027. This decision effectively bars private oil marketing companies (OMCs) from importing this crucial fuel.

The federal cabinet's decision, based on the Petroleum Division's recommendation, cites prevailing market conditions and the need to cushion consumers from escalating petroleum prices. Private OMCs will also face capped import quantities for petrol, determined by their historical sales data.

In a bid to ensure supply security, particularly given potential disruptions like the closure of the Strait of Hormuz, PSO will also establish a long-term supply contract for petrol imports with Oman's OQ Trading. These new policy guidelines have been communicated to the Oil & Gas Regulatory Authority (Ogra) for implementation in fuel arrangements and pricing mechanisms.