Pakistan’s oil industry has urged the State Bank of Pakistan (SBP) to extend a temporary import relaxation scheme, warning that fuel supply disruptions could emerge if the facility expires next month.
The Oil Companies Advisory Council (OCAC), which represents more than three dozen oil marketing companies and refineries, has requested a two-month extension or continuation of the relief measure until global market conditions improve. The current arrangement is scheduled to end on May 10.
The temporary relaxation allows companies to import petroleum products on a cost, insurance, and freight (CIF) basis, helping them better manage rising risks linked to unstable international shipping conditions.
The facility was originally introduced for 60 days after the industry raised concerns over difficulties in obtaining marine and war-risk insurance due to escalating geopolitical tensions in the Middle East.
Shipping routes through the Persian Gulf and Strait of Hormuz have faced growing uncertainty following the US-Israel conflict involving Iran. As a result, many insurers have either reduced coverage or significantly increased premium costs.
Industry representatives said the temporary relief has been essential in helping refineries and oil companies continue importing fuel cargoes during a period of severe uncertainty.
However, they warned that conditions remain challenging. Insurance costs are still elevated, freight charges remain high, and many shipowners and suppliers continue to act cautiously.
The council stated that ending the relaxation at this stage could place pressure on fuel supply chains, especially as domestic demand is expected to rise in the coming months.
