KARACHI: The Federal Investigation Agency (FIA) has registered a criminal case against several senior executives of Gas & Oil Pakistan Limited (GO Petroleum) and associated officials over their alleged involvement in a multi-billion rupee customs fraud involving the illegal removal and sale of imported petroleum products without payment of customs duties, taxes, petroleum levy, and other statutory charges.
The case, registered by the FIA’s Corporate Crime Circle, names the Chief Executive Officer of GO Petroleum, the CEO of Terminal One Limited (TOL), the terminal manager, a signatory of GO Petroleum’s Customs-bonded warehouse at Mehmoodkot, Muzaffargarh, the warehouse’s senior manager, and other relevant officers and officials of the Customs Collectorates at Port Qasim, Faisalabad, and Lahore-East.
The FIR has been lodged under Section 156 of the Customs Act, 1969, read with Sections 409, 420, 468, 471, 109, and 34 of the Pakistan Penal Code (PPC), along with Section 5(2) of the Prevention of Corruption Act, 1947.
Alleged Evasion of Duties and Petroleum Levy
According to the FIA, imported petroleum products stored in Customs-bonded terminals are non-duty-paid goods and cannot be removed, sold, dispatched, or consumed until an Ex-Bond Goods Declaration (EB-GD) has been filed and all applicable customs duties, taxes, petroleum levy, and climate support levy have been paid.
The investigation alleges that GO Petroleum unlawfully removed and sold thousands of metric tons of bonded petroleum products before fulfilling these legal requirements, resulting in the alleged evasion of government revenues worth billions of rupees.
Alleged Irregularities at Port Qasim
The FIA stated that the alleged fraud first surfaced at Terminal One Limited (TOL), a Customs-licensed bonded petroleum terminal at Port Muhammad Bin Qasim.
According to investigators, GO Petroleum imported High Octane Blending Component (HOBC/RON 95) through the vessel PS Hamburg and allegedly sold approximately 4,744 metric tons of bonded fuel before filing the required customs declaration and paying the applicable duties and levies.
The FIA said these findings were supported by a forensic examination of the terminal manager’s laptop.
Mehmoodkot Terminal Under Scrutiny
The investigation further alleges that a similar pattern was uncovered during a joint inspection conducted on June 22, 2026, at GO Petroleum’s Customs-bonded terminal in Mehmoodkot, District Muzaffargarh.
According to the FIA, Customs records indicated that 39,121 metric tons of bonded Premium Motor Gasoline (PMG) should have been available at the terminal. However, the terminal’s licensed storage capacity is only 26,072 metric tons, making such inventory levels physically impossible.
During the joint inspection by the FIA, the Oil and Gas Regulatory Authority (OGRA), and Customs officials, only 7,039.7 metric tons of PMG were reportedly found in storage.
Investigators allege that approximately 32,081 metric tons of bonded fuel had been clandestinely removed from the Customs-bonded warehouse without filing the required Goods Declarations or paying the associated government dues.
Alleged Obstruction of Investigation
The FIA also alleged that during the inspection at Terminal One Limited, the terminal manager deliberately obstructed the verification process by refusing to provide bonded stock records, withholding dip-calibration charts, declining to sign the joint stock verification report, and allegedly threatening inspection officials while acting on the instructions of the terminal’s owners.
According to the agency, the investigation suggests that the alleged irregularities were not isolated incidents but formed part of a broader pattern of unauthorized removals of bonded petroleum products.
GO Petroleum Denies Allegations
Responding to the allegations, Gas & Oil Pakistan Limited (GO Petroleum) rejected claims of unpaid customs duties and taxes, maintaining that it has fully complied with all applicable legal and regulatory requirements.
In an official statement, the company said it remains current on the payment of all customs duties, taxes, levies, and other statutory obligations that have become due and payable.
GO Petroleum further stated that it is extending full cooperation to the relevant authorities and will continue to engage transparently throughout the investigation.
The company added that any issues raised by the authorities will be addressed through the appropriate legal and regulatory processes.
The FIA investigation remains ongoing, and the allegations contained in the FIR have yet to be tested before a court of law.
Story by Imtiaz Ali
