The government has barred all oil marketing companies from importing High Speed Diesel (HSD), and allowed only Pakistan State Oil (PSO) to import diesel.
Available documents disclosed that the federal government has decided that no import of High-Speed Diesel (HSD) by oil marketing companies (OMCs), other than Pakistan State Oil (PSO), will be permitted, in what appears to be a decisive attempt to centralize fuel procurement and manage the country’s rising external account pressures.
According to the decision, any additional requirement for HSD imports by other OMCs will now require specific approval from the National Coordination and Management Council (NCMC), effectively placing strict oversight on diesel import volumes and limiting market participation.
Indfustry sources said that the country currently holds 28 days’ worth of HSD stocks, with local refineries meeting 70 percent to 80pc of the national demand.
According to industry sources, the move has come against the backdrop of Pakistan’s massive fuel import bill, which stands at an estimated $20 to $22 billion annually, making it one of the largest contributors to the country’s current account deficit and persistent pressure on foreign exchange reserves.
Pakistan’s fuel economy remains one of its most critical and under-reported pressure points, with the country paying an estimated $20–22 billion annually in fuel imports, translating into a staggering $1.2–1.5 billion monthly outflow under normal conditions—figures that surge further during global price shocks. The country consumes roughly 500,000 barrels of oil per day, with a heavy reliance on imports to meet this demand, while combined petrol and diesel consumption stands at nearly 58–60 million liters per day. High-Speed Diesel (HSD), the backbone of Pakistan’s transport and logistics sector, accounts for a major share, with an annual demand of around 6 to 6.5 million tonnes—equivalent to approximately 500,000 tonnes per month. Despite domestic refining, Pakistan imports substantial volumes of HSD every year, costing billions in precious foreign exchange.
