ISLAMABAD: A parliamentary panel on Friday backed sweeping changes to Pakistan’s nearly century-old petroleum law, endorsing penalties of up to Rs100 million, confiscation of vehicles and equipment, and tighter enforcement to combat fuel smuggling and unauthorized sales.
The National Assembly Standing Committee on Petroleum, chaired by Syed Naveed Qamar, recommended that the house pass the Petroleum Amendment Bill 2025, which updates the Petroleum Act 1934. The amendments include fines of up to Rs100 million for owners involved in smuggling, seizure of vehicles and equipment used in the trade, Rs10 million fine against unauthorized fuel storage and sales. Owners running petrol stations after license cancellation would face a Rs1 million fine, while machinery and storage tanks linked to smuggling would also be confiscated.
Petroleum Secretary Momin Agha told lawmakers the ministry is working with the Punjab IT Board to digitize the oil supply chain with a track-and-trace system monitoring 17,000 tankers from depots to pumps. “We have been working for four months on a system to modernize the petroleum supply chain,” he said, adding that oil marketing companies would fund the project.
Qamar cautioned the costs would “ultimately fall on consumers,” while some lawmakers questioned the system’s effectiveness, citing past failures in tracking programs. Asad Alam Niazi recalled a case where goods tagged under a UN scheme were smuggled back into Pakistan through Quetta despite monitoring.
Shahid Khattak criticised the petroleum division for lacking a clear implementation plan. “We are always in a hurry to act, but without a clear idea of what we want to achieve,” Khattak warned.
Committee members also criticized the absence of Petroleum Minister Ali Pervez Malik, with Qamar saying it signaled the ministry was not taking the committee’s work seriously. Ogra Chairman Masroor Khan said the overhaul was needed because existing rules were “too old to address current challenges.”
While supporting tougher laws, lawmakers urged the government to ensure transparency, prevent misuse and protect the public from additional financial burdens.
