SBP Extends Special Oil Import Relief As Market Volatility Continues

The State Bank of Pakistan has extended permission for the import of crude oil and petroleum products on Cost, Insurance and Freight (CIF) basis until July 10, 2026 to facilitate uninterrupted fuel supplies amid continued volatility in international oil markets.

In a circular issued to authorized dealers, the State Bank said the relaxation granted through EPD Circular Letter No. 04 dated March 11, 2026 would remain valid for another two months.

“It has been decided to extend the validity of the relaxation granted for import of Crude Oil/Petroleum Products on CIF basis up to July 10, 2026,” the circular stated.

The SBP had initially allowed the import of crude oil and petroleum products on CIF basis for 60 days in March 2026 as global oil prices witnessed sharp fluctuations due to geopolitical tensions and supply concerns in international markets.

Under the CIF mechanism, the seller bears the cost, insurance, and freight charges up to the destination port, providing importers greater operational convenience and helping ensure timely availability of petroleum products.

The central bank advised authorized dealers to inform all concerned constituents for strict compliance with the revised instructions.

The extension comes as Pakistan continues efforts to secure stable fuel supplies amid uncertainty in global energy markets following tensions in the Middle East and concerns over shipping routes linked to the Strait of Hormuz.

In recent months, authorities have taken multiple measures to avoid disruptions in petroleum supplies, including facilitating LNG imports, managing foreign exchange outflows, and coordinating with oil marketing companies and refineries.