Ogra Approves PSO HSD Import, Rejects GO Plan

Islamabad, May 24 — The Oil and Gas Regulatory Authority (Ogra) has greenlit the import of two cargoes of high-speed diesel (HSD) totaling 95,000 metric tonnes (MT) by Pakistan State Oil (PSO) for June, while rejecting a similar plea from Gas & Oil Pakistan Ltd (GO), following a rigorous review of petroleum supply and demand. Initially, PSO sought 145,000 MT under its long-term contract with Kuwait Petroleum Corporation (KPC), but refinery representatives argued local production could meet demand, prompting Ogra to slash the approval.

GO, backed by Saudi energy giant Aramco, requested 78,000 MT, but Ogra dismissed it, citing sufficient local stock of 550,000 MT against a daily consumption of 22,000 MT. With the harvesting season over, HSD demand has dropped, an official noting, “June typically sees a slump in diesel use—local refineries can handle it.” Over the first ten months of the current fiscal year, Pakistan imported 1.7 million tonnes of HSD, including 246,000 MT in April for agriculture, but Ogra now limits imports to match the seasonal dip.

Tensions between refineries and oil marketing companies (OMCs) over product offtake and import strategies are escalating, pushing the government to draft a legal framework for binding agreements. Web context highlights Pakistan’s reliance on HSD imports (e.g., 40% of demand, web ID: 0), while posts found on X show frustration—some blame Ogra bias toward PSO, others question refinery capacity. Critically, the narrative of “adequate supply” may mask supply chain risks—web sources note refinery inefficiencies, and X sentiment suggests OMCs’ concerns could signal future shortages, hinting at policy instability.