In an alarming revelation, the smuggling of petroleum, oil, and lubricant (POL) products is costing the country $1 billion annually.
Approximately 10 million liters of petroleum products are smuggled into Pakistan daily via land and sea routes, representing 20% of the country’s annual consumption and leading to an estimated $1 billion loss to the national treasury.
A letter from the Oil Companies Advisory Council (OCAC) to the Ogra chairman has revealed that the recent surge in smuggling of petroleum products poses a severe threat to Pakistan’s oil industry, highlighting the $1 billion annual loss from this illegal activity.
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The OCAC letter warns that smuggling of petroleum products is undermining government revenue from legitimate sales of High Speed Diesel and Motor Spirit, crucial for the country’s financial stability. The letter highlights that about 10 million liters of POL products are smuggled daily, causing a $1 billion annual loss and jeopardizing the economy.
The letter notes that smuggling of petroleum products had decreased due to a government crackdown but has surged again recently. It warns that without strict and timely action, the situation is likely to worsen.
The influx of smuggled petroleum products is disrupting Pakistan’s oil supply chain, affecting pipelines, refineries, and oil marketing companies. If it persists, it could lead to the permanent closure of the domestic refining sector.
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