Low jet fuel output forces Pakistan to import nearly 288,000 tonnes of high-speed diesel 

Pakistan has been forced to import high-speed diesel during the current financial year as local refineries have failed to produce aviation fuel in line with national demand and instead prioritised diesel output due to higher margins, prompting imports of jet fuel alongside HSD cargoes, industry sources said.

Figures compiled by the oil industry show that Pakistan imported nearly 288,000 metric tonnes of HSD in December, the highest monthly volume recorded so far in the current fiscal year. December is not typically a peak demand period for diesel, making the scale of imports unusual, sources said.

Officials said imports were primarily allowed to ensure the availability of aviation fuel, with shipments arriving in the same vessels as HSD. The situation has required Pakistan State Oil to rely on imports to meet aviation fuel demand.

Industry sources also raised concerns over demand and supply assessments by the Oil and Gas Regulatory Authority, saying import approvals did not fully reflect domestic requirements. They noted that a private oil marketing company was allowed to import HSD even when PSO’s supplies were sufficient.

A government committee reviewing the matter highlighted weaknesses in the Product Review Meeting forum, chaired by OGRA, noting that it lacks a structured regulatory framework to ensure implementation of decisions or impose penalties for non-compliance.

Following the committee’s directions, OGRA has prepared draft Refined Oil Products’ Demand and Supply Management Regulations, 2025. The proposed framework includes structured demand-supply assessments, take-or-pay arrangements with mark-to-market mechanisms, import quota adjustments and enforcement through penalties. The committee has agreed in principle to the draft, subject to observations.

During the first half of the current financial year, Pakistan imported around 928,000 metric tonnes of HSD. Imports stood at about 45,000 metric tonnes in July and rose steadily, peaking in December.