Government to start real-time digital tracking of petroleum products

The government will soon introduce a real-time digital tracking system for petroleum products to stop smuggling, theft, and fuel adulteration. The system is expected to start within a month and will track every litre of fuel from import or production to storage, transport, and final sale.

This step comes under the newly passed Petroleum (Amendment) Act 2025, which gives authorities the power to use IT-based systems for continuous monitoring. The law updates the old Petroleum Act of 1934 and allows deputy commissioners, assistant commissioners, and customs officers to seize smuggled or illegally stored fuel and related equipment — even before a court conviction.

The Oil and Gas Regulatory Authority (Ogra), working with the fuel industry, is preparing the technical setup for this system. It will monitor petrol pumps, transport routes, and storage facilities, making the entire supply chain visible to regulators.

Smuggling has been a big problem for years. A 2020 report found fuel worth over Rs250 billion was being smuggled from Iran every year. A more recent 2024 report estimated that 10 million litres of smuggled Iranian fuel enter Pakistan daily, costing the government over Rs227 billion. It also revealed 533 illegal petrol pumps and dozens of smugglers, with some law enforcement officials involved.

The new law introduces heavy penalties:

• Illegal fuel trade can lead to fines from Rs1 million to Rs5 million.

• Unlicensed facilities can be shut down, with machinery and fuel confiscated, and owners fined up to Rs10 million.

• Storing or selling smuggled fuel can result in a fine of Rs100 million and cancellation of the operating licence.

• Smuggling vehicles will be confiscated under customs law.

Authorities believe this system will protect government revenue, help local refineries, and bring much-needed order to the petroleum sector.

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