Pakistan has been importing high-speed diesel (HSD) this financial year due to local refineries prioritizing diesel production over aviation fuel, which has higher national demand, industry sources said.
Nearly 288,000 metric tonnes of HSD were imported in December alone the highest monthly volume this year even though December is not usually a peak demand period for diesel.
Officials explained that the imports were mainly to ensure sufficient aviation fuel, with shipments arriving alongside HSD cargoes.
Pakistan State Oil (PSO) has relied on these imports to meet the shortfall, highlighting challenges in local production planning.
Industry insiders also pointed to gaps in demand-supply assessments by the Oil and Gas Regulatory Authority (OGRA), noting that some imports were approved even when domestic stocks were adequate.
A government review committee highlighted weaknesses in the Product Review Meeting forum, which lacks enforcement mechanisms.
In response, OGRA has drafted the Refined Oil Products’ Demand and Supply Management Regulations, 2025, introducing structured demand-supply assessments, take-or-pay arrangements, import quotas, and penalties for non-compliance. The draft has been agreed upon in principle, pending final observations.
During the first half of the fiscal year, Pakistan imported roughly 928,000 metric tonnes of HSD, starting from 45,000 metric tonnes in July and rising steadily to meet growing energy needs.