Pakistani refineries flag petroleum smuggling threat to OGRA

May 21, 2026 (MLN): Major Pakistani refineries ARL, PARCO, National Refinery Limited, and Pakistan Refinery Limited have jointly written to the Chairman of the Oil and Gas Regulatory Authority (OGRA), Islamabad, warning of a serious and growing threat posed by cross-border inflows of petroleum products to local refinery operations.

The refineries referenced an OGRA-convened meeting held over the weekend to discuss low upliftment from local refineries. 

The companies collectively urged that rather than reducing refinery production, all possible measures should be explored to curb the increasing smuggling of petroleum products, which they say is suppressing demand for locally refined fuel.

The refineries cautioned that if left unaddressed, these inflows could reach levels seen in previous years, negatively impacting refinery throughput, operational sustainability, and the broader domestic supply chain.

The joint letter calls on OGRA to formally highlight the adverse implications of unregulated cross-border petroleum inflows and to recommend appropriate enforcement and monitoring measures to protect the integrity of Pakistan's domestic petroleum supply chain.

Additionally, on the ground level, district administrations have begun taking measures to regulate Iranian petroleum products.

The Deputy Commissioner of Hub has fixed the maximum price of border trade Iranian petrol at Rs 250 per litre across the district, warning of strict action against profiteering and hoarding.

The Deputy Commissioner stated that government permission for Iranian petrol is intended solely to provide relief to the public and that no profiteers or cartels will be allowed to exploit citizens under any circumstances.

The district administration has directed all Assistant Commissioners and Price Control Magistrates to carry out effective field monitoring and ensure full compliance with the fixed prices.

All petrol agencies and dealers have been instructed to immediately display the official rate list of Rs 250 per litre at prominent locations, ensure sales strictly at the prescribed rate, and refrain from any form of overcharging or stockpiling.

Authorities have warned that any violations will result in the immediate sealing of the concerned petrol pump or agency, with all petroleum products subject to state confiscation.

Copyright Mettis Link News