Pakistan has temporarily eased its fuel import standards, allowing the import of higher-sulphur high-speed diesel (HSD) that had been restricted for nearly a decade. The decision was taken by the Special Cabinet Committee on Petroleum Prices, chaired by Finance Minister Muhammad Aurangzeb, in response to tight market supply of Euro-5 (10ppm) diesel and rising demand ahead of the upcoming harvest season.
Under the new arrangement, imports of 500ppm sulphur diesel (Euro-II/III grade) have been permitted on a provisional basis. The move aims to ensure sufficient availability of fuel, as domestic consumption typically increases during April–May due to agricultural activity. Officials noted that Euro-5 diesel is either limited in availability or significantly more expensive in current market conditions.
State-owned Pakistan State Oil had already arranged a large shipment of the allowed diesel grade, which is comparatively cheaper than Euro-5 imports and expected to help ease supply pressures. Authorities also highlighted that the relaxation could reduce import premiums by several dollars per barrel, improving overall procurement efficiency.
In addition, the committee discussed logistical arrangements for fuel imports, including routing shipments through the Strait of Hormuz with necessary permissions. Such measures are expected to help lower insurance and transportation costs while ensuring uninterrupted supply chains.
According to officials, Pakistan’s petroleum supply situation remains stable, with diesel stocks covering roughly 23–24 days of demand and petrol availability remaining adequate. Crude oil reserves, however, stand at a lower coverage level, with additional shipments already in transit to support refinery operations.
The committee also reviewed broader market conditions, noting volatility in international oil prices and rising cargo premiums due to global supply uncertainties. Authorities emphasized careful procurement planning, improved coordination among stakeholders, and closer monitoring of domestic demand to prevent hoarding and maintain steady distribution across the country.