Petrol, diesel sales remain weak despite crackdown on smuggling

KARACHI: The combined sales of high speed diesel (HSD) and petrol by 27 oil marketing companies (OMCs) stood at around 100,000 metric tonnes in the first nine months of the current calendar year — equivalent to fewer than 350 litres per day per outlet.

Industry officials told The News on Saturday that such low sales point to the continued presence of smuggled fuel and the use of solvents in petrol adulteration, despite the government’s crackdown on illegal practices. They added that sales at this level render retail outlets financially unviable.

According to industry data, September 2025 saw a year-on-year surge in fuel sales, with HSD volumes rising 20 per cent and petrol sales up 8.0 per cent. Total HSD sales reached 591,567 tonnes compared with 489,290 tonnes in September 2024, reflecting an increase of 102,277 tonnes, or 122.2 million litres.

Petrol sales in September 2025 totalled 682,866 tonnes, up from 632,704 tonnes a year earlier — an increase of 50,162 tonnes, or 68.2 million litres. Combined, HSD and petrol sales rose by 190.4 million litres year-on-year (YoY).

Industry insiders attributed the increase to actions by customs enforcement to curb fuel smuggling across western borders, as well as crackdowns on solvent suppliers. These measures contributed to higher petrol sales even during the heavy monsoon season, when large parts of Punjab were under water and agricultural activity was subdued.

They noted that the Federal Board of Revenue (FBR), through customs enforcement, had boosted government revenues and taken steps to further strengthen the system. These included the closure of over 1,600 illegal filling stations under the amended Petroleum Act1934, and strict action against importers and suppliers of solvents, mineral turpentine (MTT) and white spirit. Authorities also imposed petroleum levies, climate support levies and customs duties on kerosene, solvents, light diesel oil, white spirit and other products to curb misuse.

In addition, the Oil and Gas Regulatory Authority (Ogra) increased vigilance against outlets selling less than 3,000 litres per day and banned the import of chemicals that can be produced domestically.

However, despite these measures, the combined sales of the 27 marketing companies in the first nine months of 2025 amounted to only 100,000 tonnes of HSD and petrol — below 350 litres per day. “No station can survive on such volumes unless smuggled or adulterated products are being sold,” industry representatives said.