KARACHI: Pakistan is poised to import over 200,000 metric tonnes (MT) of high-speed diesel (HSD) in December, responding to a surge in demand fueled by increased legal sales and stricter anti-smuggling measures.
The Oil and Gas Regulatory Authority (Ogra) has approved imports for four cargoes, with Pakistan State Oil (PSO) securing three under a long-term agreement with Kuwait Petroleum Corporation (KPC) and a private oil marketing company (OMC) managing one independently. Industry insiders suggest that additional imports may be necessary as demand continues to rise.
Enhanced anti-smuggling efforts have significantly reduced the availability of smuggled Iranian diesel, previously distributed nationwide but now mostly confined to Balochistan. This crackdown has led to a price convergence between smuggled and locally available diesel, dissuading heavy vehicle operators from using the illicit product.
The rising demand has sparked debate over domestic production’s capacity to meet national requirements. While local refineries previously objected to diesel imports, current market conditions necessitate both domestic output and imports to stabilize supply.
Pakistan’s HSD stock has dropped to 300,000 tonnes, a decline from 500,000 tonnes a few months prior, reflecting increased legal sales. Data shows 466,000 tonnes of HSD were imported in the past four months, with monthly imports ranging between 90,000 and 147,000 tonnes.
Story by Tanveer Malik
