ISLAMABAD (special crosspondent) – The government has formally decided to designate Pakistan State Oil (PSO) as the sole importer of High-Speed Diesel (HSD) for the fiscal year 2026-27. This directive effectively bars all other oil marketing companies (OMCs) from importing diesel, marking a significant shift in national energy policy.

According to a report, the Oil and Gas Regulatory Authority (OGRA) has finalized its comprehensive import plan for FY2026-27. Under this framework, PSO will be the exclusive entity responsible for meeting the country’s diesel import requirements to address national maritime and supply chain objectives. The strategic move is aimed at ensuring a stable fuel supply, improving import management, and maximizing the utilization of locally refined petroleum products.

Supply Strategy and Domestic Production

The report indicates that the majority of Pakistan’s diesel demand during the upcoming fiscal year will be fulfilled through domestic refineries. The remaining shortfall, which fluctuates based on seasonal and industrial demand, will be covered exclusively through PSO’s imports. This centralized approach to procurement reflects a broader government effort, similar to efforts to strengthen bilateral trade and strategic cooperation, to streamline supply chain logistics.

Market Reaction and Industry Oversight

Energy experts have noted that the decision is designed to consolidate fuel supply planning, reduce unnecessary imports, and maintain uninterrupted availability of diesel across the country. By limiting the import landscape, the authorities aim to mitigate volatility in the fuel market. However, some industry stakeholders have expressed concerns, suggesting that granting a monopoly on diesel imports could potentially stifle market competition.

In response to these concerns, the government and OGRA have stated they will closely monitor fuel demand, local production capacities, and national supply levels throughout the fiscal year. This oversight is intended to prevent shortages and ensure that the energy sector remains resilient, building on the foundation of recent reaffirmed commitments to expanding national economic cooperation.