PSO against extra HSD allocation | The Express Tribune
Key Takeaways
- Pakistan State Oil (PSO) is concerned about the disproportionate allocation of additional High-Speed Diesel (HSD) volumes, alleging favoritism towards other OMCs and refineries.
- The additional HSD volumes allocated to PSO largely originate from other OMCs refusing to procure their allocations or from refinery overproduction against declared numbers.
- PSO's October 2025 allocation was drastically increased by nearly 45% above its regular quota, severely disrupting the company's supply chain planning.
- PSO noted that many other OMCs are failing to maintain the mandatory 20-day stock cover, while PSO is already carrying high stocks and cannot absorb unplanned volumes.
- PSO urged Ogra to enforce strict adherence to PRM allocations, compelling all OMCs to procure their declared refinery allocations.
The state-owned oil marketing company, Pakistan State Oil (PSO), has voiced significant concern to the Oil and Gas Regulatory Authority (Ogra) over the allocation of additional high-speed diesel (HSD) volumes, viewing it as an attempt to favor certain refineries and other OMCs. PSO highlighted that these additional volumes were often those that other OMCs refused to procure, yet they were diverted to PSO during Product Review Meetings (PRMs). The company detailed how its allocation for October 2025 was unilaterally increased drastically, reaching nearly 45% above its regular allocation, causing severe disruption to its supply chain management. PSO management stated that this burden arises from refinery overproduction and other OMCs failing to lift their assigned volumes, noting that major refineries produced significantly more HSD than declared between June and September 2025. PSO reiterated that it should not be obligated to procure these unplanned quantities, especially as it already maintains stock cover well above the mandatory 20-day requirement, unlike many other OMCs who are short-lifting volumes. Ultimately, PSO urged Ogra to enforce strict adherence to PRM allocations, ensuring all OMCs meet their procurement obligations to prevent supply chain risks and market distortion.
