Major Refinery Accused of Releasing 24 Million Litres of Petrol Illegally

Pakistan Customs has issued a show-cause notice to Pak Arab Refinery Limited (PARCO) on why its public bonded warehouse licence in Faisalabad should not be cancelled over alleged violations of customs laws governing the storage and delivery of petroleum products.

According to the notice, PARCO operates a public bonded warehouse on Jhumra Road, Faisalabad, under a licence issued under the Customs Act, 1969. As the warehouse licensee, the company is required to verify Ex-Bond Goods Declarations (GDs) through the WeBOC system before releasing bonded goods and to obtain the required approvals for transfers between bonded warehouses.

Customs alleged that between January 1 and June 24, 2026, PARCO delivered approximately 23.81 million liters of Motor Spirit (petrol) to Gas & Oil Pakistan Limited without verifying the required Ex-Bond GDs.

Customs also alleged that the bonded fuel was delivered before the filing of Ex-Bond Goods Declarations and payment of applicable customs duties and taxes. According to the notice, the alleged violations resulted in delays in the collection of government revenue and, in some instances, incorrect collection of the Petroleum Development Levy (PDL) on the supplied petroleum products.

Customs has alleged that these actions violated Sections 97, 99, and 116 of the Customs Act, 1969 which govern the removal and delivery of goods from bonded warehouses.

On the basis of these allegations, Customs has asked PARCO to explain why its Public Bonded Warehouse Licence No. 04/BWH/PUB/2000 should not be cancelled under Rule 344 of the Customs Rules, 2001, without prejudice to any additional legal action that may be taken under the law.

The company was directed to submit a written reply and appear through an authorized representative before Customs officials on July 3, 2026, to present its defence. The notice states that if no representative appears, the matter may be decided based on the evidence available on record.

The allegations contained in the show-cause notice have not been proven, and no final determination has been made by the relevant customs authorities.