Pakistan State Oil (PSO) is set to become the country’s sole importer of high-speed diesel (HSD) during the fiscal year 2026-27 after the government decided to discontinue diesel imports by private-sector companies.
The move is part of a broader strategy aimed at improving the management of the country’s petroleum supply chain, strengthening regulatory oversight, and ensuring a more coordinated fuel import system.
Under the new policy, PSO will assume full responsibility for importing diesel to meet the country’s domestic demand.
Authorities believe that assigning the task to a single state-owned entity will help streamline import operations, reduce logistical and procurement challenges, and ensure a more stable and predictable fuel supply across Pakistan.
Officials also expect the centralized import mechanism to enhance transparency in the petroleum sector while supporting national energy security.
By consolidating diesel imports under PSO, the government aims to improve inventory management, minimize supply disruptions, and maintain adequate fuel stocks to meet market requirements throughout the year.
The decision is expected to have a significant impact on Pakistan’s petroleum industry, as private oil marketing companies will no longer be able to import diesel independently.
Industry experts and market participants will be closely monitoring how the new policy affects fuel prices, competition within the oil sector, and the long-term efficiency of the country’s fuel supply system.
The government’s latest move reflects its ongoing efforts to strengthen the energy sector, improve fuel supply management, and ensure the uninterrupted availability of petroleum products for consumers, businesses, and key industries across the country.

