SPSL distances itself from Go Petroleum scandal

June 29, 2026 (MLN): Sitara Petroleum Service Limited (PSX: SPSL) on Monday clarified that it operates exclusively as an authorised dealer running a nationwide retail fuel-station network and does not import or procure petroleum products from refineries, effectively ring-fencing the listed company from a sprawling Federal Investigation Agency case that has rattled Pakistan's oil marketing sector.

The clarification, issued from Sitara's Lahore head office, came in the wake of the FIA First Information Report registered on June 24, 2026, by the FIA Corporate Crime Circle, Karachi.

The FIR names Gas & Oil Pakistan Limited, known commercially as Go Petroleum, along with its Chief Executive Officer Khalid Riaz and several terminal managers, on charges of clandestinely removing bonded petroleum products without filing mandatory Ex-Bond Goods Declarations and without paying Customs duties, Petroleum Levy, and Climate Support Levy amounting to billions of rupees.

Not an OMC

The crux of SPSL's defence lies in a categorical distinction between business models. "SPSL is not an Oil Marketing Company (OMC)," the company stated in response to queries sent by Mettis Global.

"The Company operates a nationwide network of retail fuel stations as an authorised dealer and does not import or procure petroleum products from refineries," it added.

That distinction carries legal and regulatory weight. The FIA's allegations centre on the misuse of Customs-bonded warehouse licences, instruments that only entities importing or bonding petroleum products would hold.

Price Differential Claims (PDCs), which arise from the gap between ex-refinery and ex-depot prices and sit at the heart of past OMC controversies, are also explicitly inapplicable to SPSL, the company confirmed, adding that it has no outstanding PDC liabilities.

No LEA Inquiry, No Regulatory Action

SPSL further confirmed that no Law Enforcement Agency or regulatory authority has initiated any inquiry or investigation against the company in connection with the matters raised in the FIA FIR.

The statement urged investors and stakeholders to rely solely on disclosures through official communication channels and the Pakistan Stock Exchange.

"As a listed company, SPSL remains committed to the highest standards of corporate governance, transparency, and regulatory compliance," the response reads.

The FIA case against Go Petroleum is among the most consequential enforcement actions against Pakistan's downstream petroleum sector in recent memory.

According to FIR, FIA Anti-Corruption Circle Karachi's Inquiry established that Go Petroleum imported High Octane Blending Component (HOBC) via vessel PS Hamburg, deposited it at Terminal One Limited (TOL) at Port Qasim under bonded status, and then sold approximately 4,744 metric tons of bonded stock before filing its first Ex-Bond GD, thereby evading all applicable duties and levies.

A parallel inspection at Go Petroleum's own Customs-bonded terminal at Mehmoodkot, Muzaffargarh, on 22 June 2026 found only 7,039.7 metric tons physically present in tanks against a required bonded stock of 39,121 metric tons, a discrepancy of approximately 32,081 metric tons of PMG that investigators allege was clandestinely removed without payment of Government dues.

The FIR notes the bonded terminal's licensed storage capacity is just 26,072 metric tons, making the required stock figure itself a physical impossibility and pointing to systematic falsification of records.

Forensic analysis of the laptop of TOL's Terminal Manager, seized on 2 April 2026, reportedly yielded an Excel sheet documenting dispatches of bonded HOBC without corresponding EB GD filings or duty payments, corroborating the FIA's case.

In a sector where evading Customs duties and Petroleum Levy can translate into a meaningful cost advantage over compliant players, SPSL's swift clarification appears aimed squarely at reassuring investors it has no skin in this game.

OGRA, Pakistan Customs (Port Muhammad Bin Qasim, Faisalabad, and Lahore-East collectorates), and the FIA are all named as co-investigating bodies.

This indicates a multi-agency regulatory sweep that could extend scrutiny to other bonded terminal operators and OMCs across the PAPCO/PARCO pipeline system.

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