The Oil Companies Advisory Council (OCAC) has called on the government to take urgent action against fuel smuggling in Pakistan. The industry body warned that illegal fuel entering the country every day is causing major financial losses and weakening the formal energy sector.
According to the council, nearly six million litres of smuggled fuel enter Pakistan daily. The illegal trade affects government revenue, harms legal businesses, and creates unfair competition in the petroleum market.
In a statement issued on Tuesday, the OCAC said every litre of smuggled fuel reduces the country’s economic strength. It added that the growing illegal trade is creating serious challenges for companies that operate under the law and pay taxes.
The council estimated that fuel smuggling costs Pakistan up to Rs. 280 billion each year. Most of these losses come from unpaid taxes and duties. Smuggled fuel is sold through illegal channels, allowing traders to avoid government charges while offering lower prices.
OCAC said the situation is putting pressure on the country’s downstream petroleum industry. Licensed oil marketing companies are finding it difficult to compete with cheaper, illegally imported fuel. This weakens the formal market and reduces investment in the energy sector.
The council also warned that continued fuel smuggling could affect the long-term stability of the petroleum industry. Legal businesses may face further financial pressure if illegal fuel continues to enter the market without effective enforcement.
To address the issue, OCAC urged the government to launch immediate and strict action against the networks involved in fuel smuggling. It called for stronger border controls, better monitoring, and effective law enforcement to break the illegal supply chain.
The organization said delays in taking action could allow smuggling networks to grow even stronger. It believes early intervention is necessary to prevent larger economic losses in the future.
OCAC stressed that stopping fuel smuggling is not only important for protecting businesses but also for improving national revenue. Better enforcement would help ensure that taxes are collected properly and that legal companies can compete fairly.
The council added that a stronger crackdown would improve confidence in the petroleum sector and support a more stable energy market. It also said reducing illegal fuel trade would strengthen Pakistan’s energy security and create a healthier business environment.
Officials believe tackling fuel smuggling should remain a national priority. A coordinated response from relevant authorities could help reduce illegal trade, protect government revenue, and support sustainable growth in Pakistan’s energy sector.
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By taking timely action, Pakistan can protect its legal petroleum industry, improve tax collection, and reduce the economic damage caused by fuel smuggling. The OCAC has urged policymakers to move quickly before the problem grows even larger.
