Pakistan State Oil (PSO) has received the government’s go-ahead to import 45,000 metric tonnes of high-speed diesel (HSD) for the month of September, a move aimed at balancing the country’s fuel supply.
The approval came from the Oil and Gas Regulatory Authority (Ogra) during its latest Product Review Meeting (PRM), which evaluates domestic demand and supply trends for petroleum products.
Sources from the industry revealed that PSO had initially sought permission to import 100,000MT of HSD. However, Ogra restricted the import volume to less than half, noting that domestic production levels were sufficient to meet the country’s needs.
The diesel imports will be sourced under PSO’s ongoing long-term arrangement with Kuwait Petroleum Corporation (KPC).
Meanwhile, Ogra denied a similar request from private-sector oil marketer GO, reasoning that the combination of local production and PSO’s imports would adequately satisfy domestic consumption for September.
Rising Diesel Imports in Context
Data from the fiscal year ending June 30, 2025, shows Pakistan imported 2.03 million MT of HSD, up from 1.83 million MT the previous year. This increase has previously led to friction between the regulator, domestic refineries, and private oil marketing firms, highlighting ongoing debates over import policies and supply management.
Industry analysts suggest that Ogra’s measured approval for PSO reflects a cautious approach to prevent oversupply while ensuring the market remains stable, especially given rising global oil price volatility.