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FBR’s Digital Strategy to Halt Smuggled Petroleum Sales

The Federal Board of Revenue (FBR) is developing a cutting-edge Geographic Information System (GIS)-based mobile application to combat the sale of smuggled petroleum products at approximately 11,500 fuel stations nationwide. The initiative, ordered by the Prime Minister, aims to digitize petrol pumps across major cities, enabling real-time tracking of authorized stations and detecting unauthorized outlets.

Oil marketing companies (OMCs) will be required to provide up-to-the-minute data on the locations and layouts of all licensed petrol pumps through the app. This move follows reports from the Ministry of Interior that smuggling of petroleum products costs Pakistan around Rs 400 billion annually.

The provincial governments have been directed to seal 1,310 illegal fuel outlets, with 749 in Punjab, 250 in Khyber Pakhtunkhwa, 183 in Sindh, and 128 in Balochistan. The FBR has also recommended the use of technology, such as Remote Terminal Units (RTU) and Auto Tank Gauging (ATG), to monitor sales and inventory at fuel stations.

In a bid to strengthen the crackdown, the government is considering amendments to the Petroleum Act of 1934, allowing district administrations to seize and destroy products and equipment at unauthorized fuel stations.

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