New legislation in Pakistan aims to address Rs300-500 billion in annual revenue losses caused by illegal petroleum activities, with stricter penalties and digital monitoring measures
The government has tabled a new bill, presented by Petroleum Minister Ali Pervaiz Malik, in the National Assembly aimed at digitally tracking the journey of petroleum products from import and production to retail sale.
According to a news report, the bill, titled the Petroleum (Amendment) Act, 2025, seeks to combat smuggling and adulteration, which result in annual revenue losses estimated between Rs300 billion to Rs500 billion, and cause environmental and vehicle engine damage.
The new amendments aim to empower authorities to confiscate petroleum products, equipment, machinery, and storage facilities. Deputy commissioners, assistant commissioners, and designated officers under the Customs Act will be authorized to take action against violators before and after conviction.
A 2020 inquiry estimated that over Rs250 billion worth of petroleum products were being smuggled into Pakistan annually, mainly from Iran. A joint intelligence report from April 2024 revealed that nearly 10 million liters of Iranian petrol and diesel entered Pakistan daily, causing a revenue loss exceeding Rs227 billion
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