Govt Launches Digital Overhaul of Petroleum Sector to Curb Smuggling

Petroleum-Sector

ISLAMABAD: The government has rolled out a comprehensive package of digital and legal reforms to strengthen transparency, accountability and regulatory oversight across Pakistan’s petroleum sector, with a particular focus on curbing fuel smuggling and illegal sales.

Officials said the reforms centre on a nationwide digitalisation drive covering petrol pumps and the entire petroleum supply chain. The initiative aims to integrate the full value chain — from imports and refineries to transportation and retail outlets — through a robust track-and-trace system that enables real-time monitoring of petroleum products.

As part of the effort, the Oil and Gas Regulatory Authority (Ogra) has launched a mobile application, Raahguzar, which provides verified information on legally operating fuel outlets across the country. The app allows consumers, regulators and other stakeholders to identify authorised petrol pumps and access reliable, up-to-date information.

To further strengthen oversight, Ogra, in collaboration with the Punjab Information Technology Board (PITB), has developed a unified track-and-trace system for tank lorries. The system will integrate enterprise resource planning (ERP) data, tank lorry movement, terminal operations and retail outlet information into a single digital platform. In the next phase, petrol pumps will be fully digitalised through the installation of automatic tank gauges and digital dispensing units, ensuring end-to-end monitoring across the downstream sector.

Significant progress has also been reported in the upstream segment. Earlier this year, Pakistan conducted its first offshore bidding round in 18 years, attracting bids for 23 exploration blocks. To institutionalise transparency, the Directorate General of Petroleum Concessions (DGPC) is launching an online portal for digital bidding of exploration and production blocks. The portal will allow E&P companies to register, access block data and submit bids and documents electronically, replacing the manual process.

Meanwhile, the Department of Explosives under the Ministry of Energy (Petroleum Division) has implemented the Explosives Track and Trace System (ETTS) to monitor and regulate the explosives supply chain. Two phases of ETTS have already been rolled out, enabling real-time tracking from manufacturers to end users, reducing pilferage and enhancing safety.

To provide strong legal backing to the reforms, amendments have been introduced to the Petroleum Act, 1934. The changes allow IT-based tracking of petroleum products, empower authorities to confiscate illegally handled fuel under the Customs Act, 1969, and impose stricter penalties for illegal dispensing, storage and transportation.

In the gas sector, the Petroleum Division has developed long-term demand and supply models, a pricing framework and a circular debt reporting tool to improve transparency in planning and financial management.

Officials said the wide-ranging digital and legislative measures demonstrate the government’s commitment to modernising the petroleum sector, eliminating illicit practices and establishing a technology-driven regulatory framework aligned with international best practices.

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