Petrol and Diesel Smuggling Threatens to Cripple Pakistan’s Oil Industry

The alarming rise in petrol and diesel smuggling across Pakistan has sent shockwaves through the country’s oil industry. The Oil Companies Advisory Council (OCAC) has issued a stark warning to the government, signaling that the situation has reached a critical point. According to the OCAC, the persistent influx of smuggled petroleum products is now threatening to shut down domestic oil refineries permanently.

In an urgent letter addressed to the Oil and Gas Regulatory Authority (OGRA) and the Ministry of Petroleum, the OCAC outlined the grave consequences of this ongoing smuggling. The letter disclosed that an estimated 10 million liters of smuggled petrol and diesel are consumed daily, constituting a staggering 20 percent of the country’s total petroleum product usage.

The OCAC’s concerns are not unfounded. The organization reported a 5 percent drop in sales of legal petrol and diesel, attributing this decline to the widespread availability of smuggled fuel. This illicit trade is not only harming legitimate businesses but is also costing the national exchequer approximately one billion dollars annually.

The letter also noted that despite previous anti-smuggling efforts yielding temporary improvements, recent intelligence suggests a resurgence in illegal activities. Smuggled fuel is now being openly sold in major cities such as Islamabad, Rawalpindi, and Peshawar, exacerbating the crisis.

Beyond the immediate economic impact, the OCAC fears that the continued smuggling will deter foreign investors from entering Pakistan’s oil sector, further crippling the industry’s growth potential.

In light of these developments, the OCAC has called on the government to take immediate, decisive action to halt the smuggling of petroleum products. Without swift intervention, the council warns, the future of Pakistan’s oil industry—and the livelihoods of those dependent on it—could be in jeopardy.