POL products smuggling harming oil industry, national exchequer

Influx of smuggled petroleum products increased to 4,000 metric ton per day as confirmed by (Ogra)

By Khalid Mustafa
August 07, 2024
A representational image showing a child transferring smuggled petrol to a container for customers. — APP/File
A representational image showing a child transferring smuggled petrol to a container for customers. — APP/File

ISLAMABAD: The smuggling of petroleum products from Iran on a sustainable basis is not only detrimental to the country’s refineries, oil marketing companies and exploration & production companies but also to the national exchequer in terms of revenue.

During March-April 2024, the influx of smuggled petroleum products increased to 4,000 metric ton day as confirmed by the Oil and Gas Regulatory Authority (Ogra), causing a loss of $35.6 million (Rs9.941 billion) per month to the oil industry and government.

The Oil Companies Advisory Council (OCAC) wrote letters in March and April to the Interior Ministry, petroleum secretary and SIFC (Special Investment Facilitation Council) and later the prime minister chaired a special meeting to curb the smuggling of petroleum products in the country apart from stopping other items.