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Smuggling Drives Decline in Petrol and Diesel Sales in Pakistan

The Oil Companies Advisory Council (OCAC) has raised alarms over the decreasing sales of petrol and diesel in Pakistan, attributing the decline to smuggling activities. The council has urged the Federal Board of Revenue (FBR), the Oil and Gas Regulatory Authority (OGRA), and the Ministry of Petroleum to take immediate action.

According to OCAC’s letter, the government saw a positive shift in fuel sales from September to December of the previous year following strict measures against unlicensed agencies and illegal petrol pumps. These actions helped curb smuggling, boosting sales and increasing government revenue.

However, the situation has worsened in 2025, with smuggled diesel being sold for Rs. 180 per liter—far below the official rate of Rs. 258.64 per liter—while smuggled petrol costs only Rs. 160 per liter.

The OCAC is particularly concerned about the recent drop in petroleum product sales since February 2025. They estimate that smuggling is causing the government to lose Rs. 1.5 billion in daily revenue.

In comparison to February 2024, sales of high-speed diesel have fallen by 6% in February 2025, while petrol sales have dropped by 5%. Over the past four months, diesel sales have decreased by 16%, and petrol sales by 13%, compared to the same period last year.

The letter urged authorities to close illegal petrol pumps, strengthen cross-border management, and ban the importation of white spirit, which is being adulterated and sold as diesel.

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