The Pakistani government has imposed a complete ban on private oil marketing companies (OMCs) from importing high-speed diesel (HSD) for the fiscal year 2027.

Instead, state-owned Pakistan State Oil (PSO) will handle all diesel imports, a decision aimed at stabilizing petroleum prices and ensuring supply security.The policy, approved by the federal cabinet, also caps petrol imports for private OMCs based on their historical sales data.

Under the new guidelines, PSO will enter a long-term supply contract with OQ Trading of Oman to secure petrol imports, especially amid the closure of the Strait of Hormuz.

The Oil & Gas Regulatory Authority (Ogra) has been instructed to implement revised pricing mechanisms for petroleum products, with prices determined by a seven-day rolling average of global market assessments.

The government emphasized that these measures are necessary to mitigate the impact of rising fuel costs on consumers while maintaining energy security.The policy also outlines strict penalties for OMCs failing to meet import commitments, including a nine-month suspension of future allocations.Additionally, the Petroleum Division’s request to adjust pricing based on market conditions and security of supply has been central to these reforms.