Pakistan extends deadline for import of petroleum products on relaxed rules till July 10

Pakistan has extended the deadline for importing crude oil and petroleum products on relaxed rules up to July 10, 2026, enabling the petroleum companies to continue fuel purchase on easy terms and conditions i.e. cost, insurance and freight (CIF) basis from the war-troubled global markets.

“It has been decided to extend the validity of the relaxation granted under the aforesaid circular letter [EPD Circular Letter No. 04 of March 11, 2026] for import of crude oil/ petroleum products on CIF (cost, insurance and freight) basis up to July 10, 2026,” the State Bank of Pakistan (SBP) said in a notification on Thursday.

Earlier on March 11, 2026, the central bank had allowed import of the petroleum products on CIF basis for a period of 60 days. The deadline was set to expire this week.

An official of Oil Companies Advisory Council (OCAC) elaborated that the central bank allowed import of oil on CIF basis after local insurance firms refused to insure the import of oil amid Middle East (ME) conflict.

“Importing oil via one ship [used to] cost somewhere $30-50 million,” they said.

The local insurance firms refused to insure the imports after global insurance firms declined to reinsure Pakistani insurance firms amid the tension in Strait of Hormuz – the passage that is used to transport some 20% of global petroleum oil, they added.

The official elaborated the CIF conditions allow global sellers to supply oil to Pakistani firms on their own ships after getting insured the loaded oil and the oil-ships from global insurance firms. This means the sellers take the risk of transporting the products to local firms.

Earlier, local oil firms used to send a ship to fetch oil, while they used to get the oil insured through local insurance firms under FoB (freight on board) and C&F (cost and freight) – where the risk of transporting oil from global to local ports remained with local buyers.

Najib Balagamwala, an official from the shipping and trading industry in Pakistan, added, “The import of petroleum products on CIF basis was costing some 3-5% lower compared to through FoB and C&F basis [ in peaceful days]”.

The cost of international insurance remains notably low compared to the one done by local firms. Besides, the freight cost also stands low via global suppliers compared to one done via local buyers’ ships.

The cost of oil import surged to $800 million a week during the ongoing geopolitical tension compared to $300 million before the latest ME conflict erupted on February 28, 2026.