ISLAMABAD: President Asif Ali Zardari on Saturday given assent to the Petroleum (Amendment) Bill, 2025, as passed by Parliament.
The new law strengthens measures against smuggling and the illegal operation of petrol pumps. It empowers Deputy Commissioners, Assistant Commissioners, and Customs authorities to confiscate illegal petroleum products and vehicles, introduces IT-based tracking, and enhances penalties for violations.
The legislation is aimed at modernizing petroleum sector regulation, improving transparency, and reinforcing the government’s efforts against smuggling and tax evasion.
A few months ago, OCAC had claimed that illicit trade has resurfaced, with smuggled High-Speed Diesel (HSD) being sold at an alarmingly low price of approximately Rs. 180 per liter, compared to the current market price of Rs. 258.64 per liter. Additionally, the adulteration of Motor Spirit (MS) with Light Aliphatic Hydrocarbon and Solvent remains unresolved, with reports suggesting that adulterated MS is being sold at Rs. 160 per liter-significantly below the regulated price of Rs. 255.63 per liter.
“This resurgence of illegal fuel trade not only disrupts legitimate businesses but also results in substantial revenue loss of approximately Rs. 1.5 billion per day for the government. The adverse impact is reflected in declining fuel sales: HSD sales in February 2025 (419,494 MT) fell by 6% compared to February 2024 (445,263 MT),” said the OCAC.
According to the Petroleum Division, six new clauses have been added to curb the widespread smuggling of petroleum products. These include powers to seal filling stations selling smuggled fuel, confiscate equipment, and take action against vehicles engaged in the illegal trade. Customs officials will also be authorized to seize vehicles transporting smuggled petroleum.
Sources in the Petroleum Division said the Petroleum Secretary assured lawmakers that the bill was necessary to stop smuggling of petroleum products worth billions of rupees—smuggling that undermines state revenue and benefits cartels rather than legitimate transporters. He clarified that the bill specifically targets large oil tankers carrying more than 40,000 liters of smuggled fuel, and not motorcycles or smaller vehicles.
