Pakistan Plans New Petroleum Import Rules for Bonded Oil Storage
Pakistan is preparing to revise its petroleum import policy as the government moves toward establishing the country’s first commercial customs-bonded oil storage system.
The proposed framework is intended to make it easier for Gulf oil producers and international commodity traders to store petroleum products in Pakistan while supporting the country’s fuel supply and energy security.
ECC to Review Revised Policy
The Economic Coordination Committee (ECC) of the Cabinet is expected to review revised guidelines for petroleum imports through customs-bonded storage facilities.
The government had approved an initial framework in June 2023, but no foreign supplier has established a bonded storage facility in Pakistan so far.
Petroleum Minister Ali Pervaiz Malik said the proposed system would allow international suppliers to store petroleum products in Pakistan for local sale or re-export.
The government would also have access to a portion of the stored supplies during officially declared emergencies.
Petroleum Products Covered Under the Plan
Under the proposed framework, approved public and private storage facilities could be used for:
- Crude oil
- Petrol
- High-speed diesel
- Jet fuel
- Furnace oil
- LPG
- LNG
Potential storage locations include Port Qasim, KPT/Keamari, Hub, Gwadar, Mahmood Kot and Machike, Sheikhupura. Port-based facilities could also be used for petroleum products intended for re-export.
Bonded Stocks Could Move to Inland Facilities
Foreign suppliers would be able to transport bonded petroleum stocks from ports to approved inland storage locations through Pakistan’s petroleum pipeline network.
As long as the products remain within the bonded system, customs duties and taxes would not be charged. The existing import arrangements for licensed oil marketing companies and refineries would continue alongside the new framework.
Taxes to Apply When Products Enter Local Market
Foreign suppliers could operate through a registered liaison office in Pakistan or an approved local consignee.
Companies could either establish their own storage facilities or use existing public and private bonded warehouses and terminals, subject to approvals from relevant authorities, including OGRA, Customs and port authorities.
Petroleum products would receive tax-neutral treatment while they remain in bonded storage. Duties, taxes and other applicable charges would become payable when products are released for domestic consumption.
Government Could Access Stocks During Emergencies
The proposed rules would give the government the ability to requisition bonded petroleum stocks during officially declared emergencies.
These could include situations such as war, armed conflict, major natural disasters or a serious disruption in domestic fuel supplies.
Compensation for requisitioned stocks would be based on prevailing international market prices, according to the proposed framework.
Re-Export Procedures to Be Simplified
The proposed policy would also make it easier for foreign suppliers to re-export petroleum products stored under the bonded system.
Several existing procedural requirements would be relaxed, subject to the conditions set out in the new framework.
OGRA would also have a right of first refusal over the final 10 percent of certain stored products. The authority would be required to respond within the specified timeframe.
Government Working on Wider Energy Reforms
The Petroleum Division formed a committee in May 2026 to review the existing bonded-storage policy and recommend changes.
The committee consulted petroleum traders, suppliers and government departments before preparing a revised draft. Feedback was also received from the Federal Board of Revenue (FBR), State Bank of Pakistan, Ministry of Commerce, Ministry of Maritime Affairs, SIFC, Board of Investment and OGRA.
FBR has raised concerns about some provisions related to existing customs and sales tax laws, prompting further revisions to the proposed framework.
The government is also pursuing broader reforms in the petroleum and gas sectors, including phased deregulation of oil marketing, increased private-sector participation in LNG imports and restructuring of the gas transmission and distribution system.
According to the petroleum minister, refineries currently maintain crude oil stocks equivalent to around five to seven days of supply, while oil marketing companies maintain refined-product stocks covering approximately 20 to 25 days.
