- Legislation Approved: The Senate of Pakistan has passed the Petroleum (Amendment) Bill, 2025, following its earlier approval in the National Assembly. The bill seeks to amend the Petroleum Act of 1934 to combat petroleum smuggling and illegal trade.
Petroleum (Amendment) Act 2025 empowers authorities to monitor import, storage, transport, and sale; imposes strict fines and penalties for smuggling and illegal operations
Read: https://t.co/NwVpUBZbzN pic.twitter.com/qkVfgxYggy
— Profit (@Profitpk) August 15, 2025
Key Provisions of the Bill
- Digital Tracking: A real-time IT-enabled system will be introduced to track petroleum products across the supply chain—from import and production to transport, storage, and sale at fuel stations.
- New Enforcement Powers:
- Filling stations selling smuggled fuel can be sealed.
- Equipment and vehicles used in illegal trade may be confiscated.
- Deputy Commissioners will be given magisterial powers to penalize offenders.
- Heavy Penalties:
- Fine of Rs. 1 million for illegal import, storage, or sale of petroleum.
- Repeat offenders: Up to Rs. 5 million.
- Unlicensed facility owners: Up to Rs. 10 million.
Debate in Senate
- Concerns Raised: Lawmakers from Balochistan opposed the bill, arguing that strict enforcement could hurt the livelihoods of poor families engaged in small-scale fuel transport.
- Govt Clarification: The Petroleum Division stated that the crackdown targets large-scale oil tankers carrying 40,000 liters or more of smuggled fuel, not motorcycles or small vehicles.
Context: The amendment is part of the government’s broader effort to digitize the petroleum sector and reduce revenue losses from smuggling and illegal sales, which cost the economy billions annually.
You May Like To Read:
