ISLAMABAD: The Oil Companies Advisory Council (OCAC) has asked the State Bank of Pakistan to extend permission for cost, insurance, and freight (CIF)-based imports of petroleum products for a further two months, or until market conditions stabilise.

In a letter to SBP Governor Jameel Ahmed on Monday, OCAC General Secretary Dr Syed Abbas Zaidi stated that “such a facility will continue to support industry in securing cargo efficiently and ensure the uninterrupted availability of petroleum products across the country”.

Last month, the SBP granted temporary permission for CIF-based imports for 60 days in view of the extraordinary geopolitical situation in the Middle East.

The council, while appreciating the decision, stated that the situation in the region remains volatile, with no meaningful de-escalation or restoration of normal shipping and insurance conditions.

The constraints highlighted earlier, particularly the limited availability and exorbitant cost of marine and war-risk insurance, coupled with the continued reluctance of shipowners and suppliers, still persist. Freight rates and war-risk premiums remain elevated, and the operational challenges in executing imports under C&F arrangements have not eased, it says.

With the circular’s validity set to expire on May 10, the oil industry anticipates considerable challenges in maintaining uninterrupted supply chains if the current relaxation is discontinued at this stage

Published in Dawn, April 28th, 2026