FIA Uncovers Rs6 Billion Tax and Petroleum Levy Fraud in Major Petroleum Sector Investigation

In what is being described as a significant breakthrough in protecting the national exchequer, the Federal Investigation Agency (FIA) has uncovered an alleged multi-billion-rupee tax evasion and petroleum levy fraud involving petroleum imports, bonded storage facilities, and fuel distribution operations. Following months of technical, forensic and documentary investigations, the FIA’s Anti-Corruption Circle Karachi has registered a criminal case against Gas & Oil Pakistan Limited (Go Petroleum), Terminal One Limited (TOL), and several senior officials.
According to the First Information Report (FIR), the inquiry was initiated in March 2026 after government agencies identified alleged discrepancies in petroleum stock reporting, sales data, and information submitted to regulatory authorities. Subsequent forensic audits, stock verification exercises, customs record examinations, and supply-chain analysis reportedly revealed evidence of large-scale irregularities, leading to the registration of the case.

Alleged Modus Operandi

Investigation documents indicate that imported petroleum products, including High Octane Blending Component (HOBC RON-95) and Premium Motor Gasoline (PMG), were stored at customs-bonded terminals. Under applicable laws, such products cannot be removed, sold, or consumed without filing Ex-Bond Goods Declarations (GD) and payment of all applicable customs duties, sales taxes, petroleum levy, and climate support levy.

According to the FIA, preliminary evidence suggests that substantial quantities of bonded petroleum products were allegedly removed from storage facilities and introduced into the supply chain without completing the required legal formalities. Investigators estimate that the alleged scheme may have caused losses of approximately Rs6 billion to the national exchequer in unpaid duties, taxes, and levies.

48.6 Million Liters of Fuel Under Scrutiny

One of the most significant findings of the investigation concerns approximately 48.6 million liters of petroleum products for which investigators reportedly found discrepancies between official records, physical stock inventories, and supply-chain documentation.
The FIA alleges that these quantities were sold without payment of customs duties, petroleum levy, and other government taxes. Investigators are examining fuel movements from bonded facilities at Port Qasim through pipeline networks extending to Mehmood Kot and Faisalabad, where multiple irregularities were allegedly detected.
The probe includes detailed analysis of stock records, fuel transfers, pipeline operations, and inventory reconciliation reports.

Senior Executives Named in FIR

Based on preliminary findings, the FIA has nominated several officials of Go Petroleum and Terminal One Limited in the case. Among those named are:
• Khalid Riaz, Chief Executive Officer, Go Petroleum
• Fiaz Ahmed, Chief Executive Officer, Terminal One Limited
• Farid Ahmed Siddiqui, Terminal Manager
• Other officials associated with the companies
The case has been registered under relevant provisions of the Customs Act 1969, the Prevention of Corruption Act 1947, and the Pakistan Penal Code. Investigators have indicated that additional individuals may be nominated as the inquiry progresses.

OGRA Records Examined

As part of the investigation, the FIA sought extensive records from the Oil and Gas Regulatory Authority (OGRA), including Price Differential Claims (PDCs) submitted by Go Petroleum, daily sales and stock position reports, agreements between oil marketing companies and private storage terminals, and inspection reports relating to bonded storage facilities.
Sources familiar with the matter said that OGRA withheld approximately Rs14 billion in Price Differential Claims submitted by Go Petroleum while the investigation was underway. Furthermore, payments totaling nearly Rs70 billion to various oil marketing companies were temporarily suspended pending verification of stock positions and regulatory compliance.
Customs and Third-Party Terminals Also Under Review

FIA officials maintain that the investigation extends beyond a single company and is focused on the broader petroleum supply-chain oversight framework. As a result, the role of customs-bonded warehouses, third-party storage operators, terminal management companies, and potentially responsible public officials is also being examined.
Investigative sources say authorities are attempting to determine how such large quantities of petroleum products could allegedly be removed from bonded facilities without detection and whether existing monitoring and control mechanisms failed or were deliberately circumvented.

Energy and financial experts have described the FIA’s forensic investigation and subsequent legal action as an important step toward strengthening transparency, accountability, and regulatory compliance within Pakistan’s petroleum industry.
According to experts, if the investigation reaches its logical conclusion and all responsible parties are held accountable, the case could become a landmark example of institutional oversight and governance reform in the country’s energy sector.
FIA officials have confirmed that investigations remain ongoing and that efforts are underway to identify additional individuals and entities potentially involved in the alleged scheme. Authorities have indicated that the scope of legal action may expand further as new evidence emerges.

GO Petroleum has rejected all allegations made by the FIA. According to CEO Khalid Riaz, insurance guarantees exist for the petroleum products that were removed from bonded warehouses. He further stated that the FIA took action without issuing any notices to the company.