Pakistan has been dealing with the issue of petrol smuggling for years and years. According to the recent Petroleum Commission’s report, our country is bearing an annual loss of Rs. 240 billion due to the smuggling of Petroleum products. The report highlighted that the petrol smuggling business is thriving more than ever.
The Problem
Petroleum products, especially motor spirit (MS) and high speed diesel (HSD), are being smuggled from the western border of Taftan, Iran. Smuggling through the sea route has also been reported but only in the month of July.
During the year 2019-20, the Commission identified 486 filling stations across the country and seized 27,911,746 litres of smuggled petrol and 997,037,434 litres of smuggled diesel, and that was only 20% of the total smuggled products. There’s four times more smuggled fuel that has made its way to the country with tax evasion. All of it together has caused the national exchequer a loss of around 240 billion rupees.
The Petroleum Commission report also shed light on another criminal act of mixing chemicals into fuel. Oil Marketing Companies and petrol pumps mix Manganese and Naphtha in cheap fuel to enhance its quality.
The Solution
After stating all the petroleum problems in Pakistan, the Commission then added some recommendations in the report. For a first, the government needs to take this smuggling problem from its root and alert the Frontier Corps to secure the Pak-Iran border.
For the sea route, the government should direct Pakistan Coast Guards and Pakistan Customs to keep an eye on the Iranian shipments during the month of July.
The Commission has also suggested controlling the quality of petroleum products by setting up mobile testing units.
While these are very practical recommendations by the Petroleum Commission, let’s see how much of it the government can bring into action.
