Lahore, August 15, 2025 — In a decisive move to tackle rampant fuel smuggling and safeguard national revenue, the Government of Pakistan is set to implement a real-time digital tracking system for petroleum products within the next month. The initiative, enabled by the newly passed Petroleum (Amendment) Act 2025, marks a major overhaul of the sector’s regulatory framework.
The system will monitor every litre of fuel from import and production to storage, transport, and final sale—addressing estimated annual losses of Rs. 300–500 billion due to theft, adulteration, and illegal trade.
The National Assembly approved the amendment on Wednesday, empowering authorities to deploy IT-based surveillance and enforcement tools. The law updates the nearly century-old Petroleum Act 1934, granting expanded powers to deputy commissioners, assistant commissioners, and customs officials to seize smuggled fuel and shut down unlicensed facilities—even prior to conviction.
Key features of the reform include:
•     End-to-End Supply Chain Visibility: Petrol stations, transport routes, and storage facilities will be digitally tracked.
•     Severe Penalties: Fines range from Rs. 1 million for first-time offenders to Rs. 100 million for facilities found selling smuggled fuel.
•     Licence Enforcement: Facilities with expired or cancelled licences have six months to comply or face sealing and asset confiscation.
•     Vehicle Seizures: Smuggling vehicles will be confiscated under the Customs Act 1969.
The Oil and Gas Regulatory Authority (OGRA), in collaboration with industry stakeholders, is finalizing the technical rollout. The reform follows alarming findings from recent intelligence reports, which estimate 10 million litres of Iranian fuel are smuggled into Pakistan daily—costing the economy over Rs. 227 billion annually.
With trial powers vested in Sessions Courts and appeal rights extended to the High Court, the government aims to restore transparency and accountability in a sector long plagued by informal trade and regulatory gaps.