Local refineries urge OGRA to act as smuggled fuel floods Pakistan amid global supply disruptions.
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Smuggled petroleum products from Iran have begun entering Pakistan in large volumes again, raising alarms among domestic refineries already under pressure from rising global oil prices and supply uncertainties due to the prolonged closure of the Strait of Hormuz.
Major refineries — including Pak Arab Refinery (Parco), Pakistan Refinery Ltd (PRL), National Refinery Ltd (NRL), and Attock Refinery Ltd (ARL) — have jointly written to the Oil and Gas Regulatory Authority (OGRA), warning that unregulated inflows are undermining local production and weakening demand for domestically refined fuel.
Refineries noted that if fuel smuggling continues unchecked, it could return to previously high levels, hurting refinery throughput, operational sustainability, and the entire petroleum supply chain in Pakistan.
An intelligence report from 2024 revealed smuggling networks involving hundreds of petrol stations, officials, and Iranian smugglers, costing the national exchequer billions in lost revenue.
The widespread smuggling is driven by price differences and porous borders, with Iran’s heavily subsidized fuel making its way into Pakistan via land and sea routes, at times accounting for a large share of diesel sales.
Refinery stakeholders are urging OGRA and authorities to strengthen enforcement and monitoring to protect the integrity of the domestic petroleum market and discourage illegal inflows.
