Islamabad: In a historical reform, the Government will launch the real-time digital monitoring of each liter of oil derived products, from import and production to storage, transport and final sale, within a month, in an attempt to curb smuggling, robbery, evil appropriation and adulteration, which is estimated to cause annual income losses of RS300-500 billion RS300-500.
A senior government official said Sunrise That the National Assembly approved the Petroleum Law (amendment) of 2025 on Wednesday, allowing the authorities to deploy systems based on information technology for continuous monitoring of oil products. The law aims to coordinate the efforts of several compliance agencies to regulate storage, transport and sale, both together and independently.
The new legislation modifies the Petroleum Law of almost a centenary of 1934, presenting provisions for digital monitoring and granting powers to comply with the attached commissioners, commissioners attending and official designated under the Customs Law of 1969, which allows them to take advantage of the smuggling fuel or illegally stored of fuel and infrastructure related before and after the conviction.
The Petroleum and Gas Regulatory Authority (OGRA), together with the interested parties of the market, has been working for months on the technical side of the deployment to ensure implementation without problems. The system will cover the monitoring in the service stations, the route transport and the designated storage facilities.
The new law presents the real-time monitoring of oil derived products from importation to retail trade, aims to stop RS300-500 billion in annual losses
Local refineries and oil marketing companies have pressed for a long time for more strict controls in smuggling, particularly at the borders and key national points, citing serious damage to their businesses and the loss resulting from government income. The illicit trade of oil derived products, including liquefied petroleum gas (LPG), remains a persistent problem.
A 2020 investigation, in charge of the then Prime Minister Imran Khan, revealed oil smuggling worth more than RS250B annually of Iran and presented the absence of supervision in the sector. A more complete intelligence report presented in April 2024 pointed out that around 10 million liters of Iranian gasoline and diesel were being introduced in Pakistan daily, which resulted in a loss of income of more than RS227bn.
The report also identified the participation of 533 illegal service stations, 105 known oil smuggers and complicit personnel in more than a dozen law enforcement agencies. He detailed informal border crossings and smuggling routes established throughout the country.
The amended law introduces severe sanctions for offenders. People involved in illegal import, transportation, storage, sale, refining or combination of oil derived products will face RS1M fines, with repeat offenders subject to sanctions of RS5M. The facilities that operate without valid licenses will face the closure and confiscation of all machinery, storage tanks and oil products. The owners of such facilities will be fined with RS10M.
For facilities with expired or canceled storage licenses (issued under Form K by the Explosives Department), a six -month grace period has been granted for renewal or restoration. Failure will result in the sealing of the installation, the confiscation of the assets and a fine of RS1M. The Explosives Department must renew the licenses within 30 days after the reception of the complete documentation and payment.
In cases where the facilities are storing or selling smuggling fuel, the law requires immediate closure, the confiscation of assets and a fine of RS100m. In addition, the Explosives Department must cancel the operational license of said installation.
The vehicles involved in smuggling activities will also be confiscated under the provisions of the Customs Law of 1969. Any seized product will be delivered to customs officers for new measures under applicable laws. It is important to note that confiscation procedures can begin before any conviction.
In addition, the Law grants the trial of accused persons with the session court, while the administrative powers will be exercised by attached or assistant commissioners. The injured parties will retain the right to appeal to the Superior Court within 30 days after the reception of a decision.
The reform is considered a step that has long been ordering to the Pakistan oil supply chain, reducing the environmental damage and engine of adulterated fuel and plugging significant leaks in public revenues.
Posted in Dawn, August 15, 2025
