The Oil Companies Advisory Council (OCAC) has raised alarms over a significant decline in petrol and diesel sales due to rampant smuggling. In a letter addressed to the Federal Board of Revenue (FBR), the Oil and Gas Regulatory Authority (OGRA), and the Ministry of Petroleum, OCAC has urged immediate action to curb the illegal fuel trade that is severely impacting government revenues and the national economy.
Smuggling Undermining Fuel Sales & Government Revenue
OCAC pointed out that strict measures taken against unlicensed agencies and illegal petrol pumps last year had successfully curbed fuel smuggling, resulting in increased sales between September and December 2024. This, in turn, contributed positively to the national revenue. However, the situation has worsened since February 2025, with a sharp decline in sales.
According to OCAC’s findings, smuggled diesel is being sold at Rs. 180 per liter, which is significantly lower than the official price of Rs. 258.64 per liter, while smuggled petrol is available at Rs. 160 per liter, undercutting the regulated price.
Massive Revenue Loss Estimated at Rs. 1.5 Billion Daily
The smuggling crisis has resulted in a daily revenue loss of approximately Rs. 1.5 billion for the government. The figures presented in OCAC’s report highlight the following concerning trends:
- Diesel sales fell by 6% in February 2025 compared to February 2024.
- Petrol sales declined by 5% during the same period.
- Over the past four months, diesel sales dropped by 16%, and petrol sales by 13%, compared to the corresponding period last year.
Urgent Measures Proposed
To counteract the crisis, OCAC has recommended the following immediate actions:
Shutting down illegal petrol pumps operating without licenses. Enhancing border security measures to prevent smuggling. Banning the import of white spirit, which is being adulterated and sold as diesel.
Conclusion
The illegal fuel trade is not only damaging legitimate businesses but also depriving the government of critical revenue. OCAC has urged authorities to take swift and decisive action to prevent further economic damage and restore stability in the fuel market.
