OCAC Raises Alarm Over Declining Fuel Sales Due to Smuggling
News Desk
Islamabad: The Oil Companies Advisory Council (OCAC) has expressed serious concerns over a decline in petrol and diesel sales due to rampant smuggling, urging the Federal Board of Revenue (FBR), the Oil and Gas Regulatory Authority (OGRA), and the Ministry of Petroleum to take immediate action.
In a letter addressed to the relevant authorities, the OCAC highlighted that stringent measures against unlicensed agencies and illegal petrol pumps last year had significantly curtailed smuggling, leading to an increase in fuel sales between September and December.
The crackdown had also boosted government revenue and strengthened the national economy. However, the council noted that smuggling activities have resumed, severely impacting the petroleum sector.
According to the OCAC, smuggled diesel is being sold at Rs 180 per liter, substantially lower than the official price of Rs 258.64 per liter, while smuggled petrol is available at Rs 160 per liter.
The disparity in prices has resulted in a noticeable decline in legal fuel sales since February 2025, with the government estimated to be losing approximately Rs 1.5 billion in daily revenue.
Official figures indicate that high-speed diesel sales fell by 6 percent in February 2025 compared to the same month in 2024, while petrol sales saw a 5 percent decline. Over the past four months, diesel sales dropped by 16 percent and petrol by 13 percent compared to the corresponding period last year.
The OCAC has called on authorities to take decisive steps to curb smuggling, including shutting down illegal petrol pumps, enhancing cross-border monitoring, and banning the import of white spirit, which is reportedly being adulterated and sold as diesel.
The growing issue of fuel smuggling has raised concerns over its long-term economic impact, with industry stakeholders urging the government to implement stronger regulatory measures to prevent further revenue losses and ensure fair competition in the petroleum sector.
