Islamabad, May 14, 2025: In a significant move aimed at curbing fuel smuggling and adulteration, the Pakistani federal government has unveiled the Petroleum (Amendment) Act, 2025.
This crucial legislation, now under consideration in the National Assembly, will empower authorities to digitally track petroleum products in real time, effectively combating the estimated Rs. 300-500 billion annual losses caused by illicit fuel trade.
The new bill introduces an advanced IT-based tracking system to monitor petroleum products as they move across storage facilities, fuel stations, and transportation vehicles.
This innovation will ensure tighter control over the fuel distribution chain, reducing opportunities for illegal activities.
As part of the bill’s provisions, law enforcement authorities, including deputy commissioners, assistant commissioners, and specially designated officers, will have the authority to seize illicit fuel, illegal storage units, equipment, and vehicles.
Offenders will be prosecuted in sessions courts, and those found guilty could face substantial penalties. For instance, those caught in illegal fuel trade will be fined up to Rs. 1 million, with the fine escalating to Rs. 5 million for repeat offenses.
The legislation also includes a strict crackdown on unlicensed fuel facilities.
These sites could face fines of Rs. 10 million, alongside the sealing of their premises and confiscation of their machinery, storage tanks, and stock.
Sites involved in the sale of smuggled fuel will face even harsher consequences, including fines of up to Rs. 100 million, loss of their operating license, and confiscation of assets.
Vehicles found transporting smuggled fuel will also be seized under the new law, ensuring a comprehensive approach to tackling the illegal fuel trade from all angles.
Additionally, operators with expired or canceled licenses will have a grace period of six months to renew their licenses, after which they will incur a Rs. 1 million fine for non-compliance.
The introduction of the Petroleum (Amendment) Act, 2025 marks a decisive step in Pakistan’s ongoing efforts to protect its economy from the damaging impacts of fuel smuggling.
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This legislative move promises to enhance transparency and accountability within the fuel distribution sector while safeguarding consumers from harmful adulterated fuel.
With this act, the government is sending a clear message: the days of unchecked fuel fraud are numbered. Stay informed, as this law could have far-reaching consequences for the petroleum industry in Pakistan.
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