The State Bank of Pakistan (SBP) has extended its temporary relaxation for crude oil and petroleum product imports on a Cost, Insurance, and Freight (CIF) basis until July 10, 2026, as authorities attempt to stabilize fuel supplies during ongoing global market volatility.
The relaxation was originally introduced in March 2026 for a period of 60 days in response to rising geopolitical tensions in the Middle East and disruptions in international shipping and insurance markets. Under the revised arrangement, oil importers can continue purchasing petroleum products through CIF contracts instead of the standard Free on Board (FOB) mechanism.
Industry officials say the extension will help oil marketing companies maintain uninterrupted fuel supplies while reducing operational challenges caused by fluctuating freight charges and insurance costs. The Oil Companies Advisory Council (OCAC) had earlier requested the SBP to continue the facility for at least two more months due to persistent instability in global energy markets.
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Pakistan has been facing increasing pressure from rising international oil prices, with the country’s weekly oil import bill reportedly climbing sharply amid regional conflict and global supply concerns. Analysts warn that sustained increases in energy costs could widen Pakistan’s trade deficit and place additional strain on foreign exchange reserves.
The central bank’s move is being viewed as a temporary support measure aimed at ensuring energy security and preventing disruptions in domestic fuel availability during uncertain economic conditions.
