KARACHI: Widespread smuggling of petroleum products is suspected as sales volumes at most outlets of oil marketing companies (OMCs) remain far below levels required for commercial viability, industry data shows.
Despite government crackdowns, internal assessments reveal that average daily sales of motor spirit (MS) and high-speed diesel (HSD) at many OMC pumps are insufficient to cover operational costs. “This clearly indicates that these outlets are being supplied with smuggled fuel or sourcing products from other OMCs,” industry officials said.
On average, 24 OMCs are selling less than 2,500 litres of MS and HSD per day, with some reporting under 500 litres. For viability, stations must sell at least 5,000 litres daily in urban areas and 4,000 litres in rural regions. Suspicious sales ratios — such as eight litres of MS for every litre of HSD, compared with the industry norm of 1.2:1 — further point to illegal supplies.
A joint government–industry assessment for July 2025 showed Taj Gasoline leading the sector with average daily sales of 12,461 litres across 98 pumps. It was followed by Fossil Energy at 8,662 litres (50 pumps), PGL at 6,204 litres (851 pumps), Pakistan State Oil (PSO) at nearly 6,000 litres (3,167 pumps), Vital Petroleum at 5,900 litres (123 pumps), and ECHO at 5,622 litres (nine pumps).
Other players with over 4,000 litres per day included Ahmad International, Gas & Oil, Attock Petroleum, Flow Petroleum, My Petroleum, Euro Oil, Jinn Petroleum, and Hi-Tech Lubricants. By contrast, 24 OMCs recorded significantly lower averages, reinforcing suspicions that smuggled or diverted fuel is keeping their outlets running.
Story by Tanveer Malik
