Petrol dealers seek fair revision of proposed petroleum bill.
ISLAMABAD: The All Pakistan Petroleum Dealers Association (APPDA) has issued a strong warning against the proposed Petroleum (Amendment) Act 2025, arguing that while the legislation aims to curb fuel smuggling, it could instead penalize law-abiding petrol retailers and destabilize the national energy supply chain.
Speaking to fuel station owners on Friday, APPDA Spokesman Hassan Shah said the bill grants sweeping and unchecked powers to local administrations, such as Assistant Commissioners and Deputy Commissioners, without judicial oversight or regulatory checks. He warned that such provisions leave room for coercion, misuse, and “arm-twisting” of dealers to meet arbitrary enforcement targets.
“Petrol dealers have invested billions in infrastructure across Pakistan. This bill threatens that investment by granting executive powers without accountability. That’s not regulation it’s intimidation,” Shah stated.
Pakistan has over 11,800 registered petrol pumps, with over 83% operated by independent retailers. These businesses function as commission agents under licensed Oil Marketing Companies (OMCs), with no role in fuel importation, production, or adulteration.Petrol Prices Kept Unchanged Till June End
Despite this, the proposed amendments place strict liability on retailers and empower district officials to seal stations, impose heavy fines, or confiscate assets, often without proof of wrongdoing or prior notice.
“If passed in its current form, this bill would make dealers liable for issues beyond their control, while leaving the real culprits, smugglers and unregulated distributors, untouched,” Shah said.
APPDA’s concern is heightened by the scale of fuel smuggling in Pakistan. Recent estimates show that over 10 million litres of Iranian petrol and diesel are smuggled into the country daily, causing annual tax revenue losses exceeding Rs 227 billion. The illegal fuel trade in Balochistan is worth $400 million, almost triple the province’s legal trade volume.
The Oil Companies Advisory Council (OCAC) has also flagged Rs1.5 billion daily loss to the national exchequer from the illicit trade in petroleum products.
He stated that they firmly oppose smuggling, as petrol dealers are among the primary victims of this unlawful activity but enforcement must be targeted, and transparent.
APPDA has submitted a formal letter to government authorities demanding key revisions to the bill, including:
• Retailers should only be held liable when there is proof of prior knowledge or direct involvement in illegal activity.
• OMC accountability must be established before initiating any punitive action against pump operators.
• No sealing, fines, or confiscation should occur without prior notice, investigation, and formal documentation—except in immediate public hazard situations.
• OGRA must be re-established as the primary regulatory authority, with enforcement actions reported within 48 hours.
• A Petroleum Retailers Grievance Redressal Committee (PRGRC) should be created to allow appeals and operational relief during disputes.
• Whistleblowers among retailers must be protected with confidentiality and immunity.
• Officials who violate procedural safeguards should face disciplinary action, and affected pump owners should be compensated.
• Sections such as 23(3A–3C) should be amended to remove strict liability and require proof of intent or collusion.
• Section 4(kk) should include a grace period for implementing digital tracking systems.
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Major Naveed Suleman Malik (Retd) also addressed the gathering, stating that executive powers should be exercised only after proper inquiry and with judicial authorization.
“We support strong action against fuel smuggling, but not at the cost of legal businesses. There must be a clear distinction between criminals and commission-based retailers who operate under strict controls,” Malik said.
