Pakistan centralizes diesel imports to state oil firm as private sector access tightens

The move consolidates control over a critical fuel segment, adding another layer of state intervention in a market already grappling with rising import costs and supply chain volatility.

By Handelsavisen Newsroom · Automated 2026-07-21 03:09 UTC · 1 min read

Pakistan’s government has imposed a complete ban on high-speed diesel (HSD) imports by private oil marketing companies, designating Pakistan State Oil (PSO) as the sole importer for the fiscal year 2027.

The policy shift effectively removes private sector participation from the diesel import market, centralizing procurement and distribution under the state-owned entity.

953 billion in the first 11 months of the 2025-26 fiscal year, reflecting a 2.

The decision comes as Pakistan’s petroleum import bill surged to $14.953 billion in the first 11 months of the 2025-26 fiscal year, reflecting a 2.23% increase year-on-year.

By consolidating diesel imports, the government aims to streamline supply chains and potentially negotiate better terms, though it also concentrates risk within a single state entity.

This follows earlier reports that the government is considering resuming crude oil and natural gas imports from Iran, signaling a broader strategy to diversify supply sources amid global energy market pressures.

The centralization of diesel imports adds to the complexity of Pakistan’s energy landscape, which has been shaped by geopolitical tensions and shipping risks in the Strait of Hormuz.