The federal government has introduced the Petroleum (Amendment) Act, 2025, in the National Assembly to digitally track petroleum products to prevent Rs. 300-500 billion losses in smuggling and adulteration.
The bill enables real-time IT-based tracking of petroleum across storage sites, fuel stations, and transport vehicles.
It authorizes seizure of illegal fuel, equipment, storage, and vehicles under the Customs Act, 1969, by deputy commissioners, assistant commissioners, and designated officers.
Sessions courts will handle trials for such cases. Deputy and assistant commissioners will lead enforcement, while appeals may be filed in high courts. The Department of Explosives must renew licences within one month upon submission of documents and fee.
Fines include Rs. 1 million for illegal fuel trade, rising to Rs. 5 million for repeated offences. Unlicensed facilities will be sealed, fined Rs. 10 million, and lose machinery, tanks, and stock.
Sites selling smuggled fuel will be fined Rs. 100 million, lose their license and their assets. Also, vehicles transporting smuggled fuel will be seized.
Those with expired or cancelled licences have a six-month grace period to renew, after which a Rs. 1 million fine will be imposed.