A significant rise in the smuggling of petrol and diesel has raised serious concerns within the oil industry, prompting the Oil Companies Advisory Council (OCAC) to take urgent action.
In a letter addressed to the Oil and Gas Regulatory Authority (OGRA) and the Ministry of Petroleum, the OCAC has warned that the increasing influx of smuggled oil could potentially lead to the permanent shutdown of domestic oil refineries.
The OCAC highlighted that while the situation had improved a few months ago due to anti-smuggling measures, recent reports from various agencies indicate a resurgence in illegal trafficking.
The letter reveals that an estimated 10 million liters of smuggled petroleum products are being consumed in the country daily, accounting for 20 percent of domestic petroleum product consumption.
The impact of this smuggling is already evident, with petrol and diesel sales down by 5 percent, according to the OCAC. The smuggled oil is now being sold openly in major cities such as Islamabad, Rawalpindi, and Peshawar.
The OCAC further stated that the national exchequer is losing approximately one billion dollars annually due to this illegal trade. Moreover, the ongoing smuggling is expected to deter potential foreign investment in the country's oil sector.
The OCAC has urged the government to take immediate and concrete steps to curb the smuggling of petroleum products and safeguard the future of the domestic oil industry.
