The Oil and Gas Regulatory Authority (OGRA) has granted approvals for the import of 200,000 tonnes to Pakistan State Oil (PSO) for three cargoes and one to a private oil marketing company (OMC) as demand is expected to surge in December.Â
According to a media report, the imports could exceed four cargoes due to rising diesel consumption. PSO will import under its long-term contract with Kuwait Petroleum Corporation (KPC), while the private OMC will independently manage one cargo.
The spike in HSD demand follows intensified government efforts to curb diesel smuggling from Iran. Previously available nationwide, smuggled diesel—usually of lower quality—is now mostly confined to Balochistan. Dealers have reported a reduction in smuggled diesel supply, leading to price hikes that have narrowed the gap between locally available diesel and smuggled products, discouraging heavy vehicle operators from using smuggled fuel.
Local refineries had earlier opposed OGRA’s decision in October to allow a private OMC to import HSD, arguing domestic production could meet demand. However, industry experts now contend that the surge in diesel demand necessitates both local production and imports.
Current HSD stock levels in Pakistan are approximately 300,000 tonnes, significantly lower than the 500,000 tonnes recorded a few months ago, reflecting increased legal sales.
Data from the oil sector shows that Pakistan imported 466,000 tonnes of HSD over the last four months. Monthly imports stood at 98,000 tonnes in July, 147,000 tonnes in August, 131,000 tonnes in September, and 90,000 tonnes in October. Industry insiders expect the December imports to further stabilize diesel supply amid heightened demand.
