Amid challenges in the supply chain leading to refinery closures and storage issues, the government has instructed the Ministry of Interior and the Federal Board of Revenue (FBR) to launch immediate operations against oil smuggling, with support from other stakeholders.
Sources informed Dawn that the Prime Minister has engaged with defense authorities to provide maximum support to civil agencies in combating smuggling, which causes significant annual losses and disrupts the petroleum supply chain, impacting refineries and marketing companies.
The Ministry of Interior and FBR have been directed to take swift and appropriate action to address this urgent issue, based on a complaint from the Oil Companies Advisory Council (OCAC) to the Special Investment Facilitation Council (SIFC) and the Prime Minister’s Office.
The petroleum division highlighted the threat posed by petroleum smuggling to refinery investments and urged immediate corrective measures to stabilize the oil supply chain. Refineries are facing challenges due to high stocks of smuggled fuel in the market, reducing production and impacting the entire industry.
The OCAC emphasized the urgent need for government intervention to restore market stability and prevent further disruptions to the oil industry caused by rampant smuggling. They warned of dire consequences, including delayed investment projects and financial strain throughout the supply chain, if decisive actions are not taken promptly.
