Petrol and Diesel Smuggling Threatens Closure of Pakistan’s Oil Industry
The rise in petrol and diesel smuggling has sparked serious concerns within Pakistan’s oil industry, prompting the Oil Companies Advisory Council (OCAC) to call for urgent intervention.
In a letter to the Oil and Gas Regulatory Authority (OGRA) and the Ministry of Petroleum, the OCAC warned that the increasing volume of smuggled oil could lead to the permanent shutdown of domestic oil refineries. The council noted that, despite previous improvements due to anti-smuggling efforts, recent reports indicate a troubling resurgence in illegal trafficking.
The letter reveals that an estimated 10 million liters of smuggled petroleum products are consumed daily in Pakistan, representing 20 percent of the country’s total petroleum consumption. This surge in smuggling has already had a significant impact, with petrol and diesel sales down by 5 percent.
Smuggled oil is being sold openly in major cities such as Islamabad, Rawalpindi, and Peshawar. The OCAC also highlighted that the national exchequer is losing approximately one billion dollars annually due to this illegal trade. Additionally, the ongoing smuggling threatens to deter potential foreign investment in Pakistan’s oil sector.
The OCAC has urged the government to implement immediate and effective measures to combat petroleum smuggling and protect the future of the domestic oil industry.
