ISLAMABAD – The All Pakistan Petroleum Dealers Association (APPDA) has raised serious concerns over the proposed Petroleum (Amendment) Act 2025, warning that while its stated goal is to curb rampant fuel smuggling, the bill in its current form could severely penalize law-abiding fuel retailers and destabilize the country’s energy supply chain.
Speaking to fuel station operators on Friday, APPDA spokesperson Hassan Shah criticized the bill for granting sweeping, unchecked powers to local administrative officials such as assistant commissioners and deputy commissioners—without judicial oversight or regulatory accountability.
“These provisions open the door for coercion and misuse,” Shah warned. “It’s not regulation—it’s intimidation.”
He emphasized that Pakistan’s over 11,800 registered fuel stations—83% of which are operated by independent retailers—have collectively invested billions in infrastructure. These businesses operate under oil marketing companies and have no involvement in fuel smuggling or adulteration, yet the proposed bill places strict liability on them.
Under the draft legislation, district officials would be empowered to seal fuel stations, impose heavy fines, and confiscate assets—often without requiring proof or issuing prior notice.
“If passed, the bill will hold retailers accountable for crimes they did not commit, while actual culprits—smugglers and unlicensed fuel distributors—remain untouched,” Shah added.
The APPDA’s opposition comes amid growing concern over the smuggling of Iranian fuel into Pakistan, with estimates indicating over 10 million litres of smuggled petrol and diesel entering daily. This illicit trade results in annual tax losses exceeding Rs227 billion.
