Massive diesel theft operation exposed in Karachi

Customs Intelligence foils illegal activity causing daily losses amounting to millions of rupees

In a significant development on Wednesday, Customs Intelligence has exposed a clandestine operation involving the theft of non-duty paid diesel from the Pakistan Arab Refinery Company (PARCO) oil pipeline, according to a press release.

The illegal activity, which had gone unnoticed for an extended period, is believed to have caused daily losses amounting to millions of rupees, with a cumulative impact in the billions.

According to the statement, A 174-foot-long tunnel was clandestinely used by the smugglers to extract and steal non-duty-paid diesel. 

🚨 Customs Intelligence Karachi exposes a massive fuel smuggling operation! Non-duty paid diesel stolen through a secret 174-ft tunnel, causing daily losses in crores, totaling billions. 65,000 liters of non-duty/stolen diesel seized, valued at Rs 20 million. 🧵1/3 pic.twitter.com/RlveaVblEH

— Danyal Gilani (@DanyalGilani) January 24, 2024

The Customs Intelligence Karachi, employing an intelligence-based operation (IBO), meticulously planned and executed the raid that led to the discovery of this elaborate scheme.

The modus operandi, uncovered by Customs Intelligence, points to a complex and evolving nature of fuel smuggling within the country. The operation resulted in the detection of a mega scam involving massive non-duty-paid diesel theft, potentially reaching billions of rupees.

Read more: Mafia pilfering oil from PARCO line roams free

During the raid, a staggering 65,000 litres of non-duty/stolen diesel, valued at Rs20 million, were seized by the Customs Intelligence team. This underscores the scale of the smuggling operation and the significant revenue loss to the government exchequer on a daily basis.

Clandestine tunnel discovery underscores the evolving and complex nature of fuel smuggling. Ongoing efforts to ensure accountability and prevent future losses. 🧵2/3 pic.twitter.com/CMPU6AgYn9

— Danyal Gilani (@DanyalGilani) January 24, 2024

“This case indicates a mischievous modus operandi where the smugglers, facing heightened scrutiny and crackdowns by the Customs Intelligence and other LEAs on traditional smuggling routes and methods, resort to more innovative and covert means,” it added.

The successful operation was initiated following a tip-off from Faiz Ahmad Chadhar, Director General of Customs Intelligence, regarding an organised syndicate of smugglers involved in the theft and sale of non-duty paid diesel.

Meticulous intelligence gathering and surveillance efforts, with a focus on a suspicious industrial site in Karachi, ultimately led to a breakthrough discovery.

💡 Intelligence Based Operation reveals an Edible Oil factory's role in illegal activities. Owner arrested, marking a breakthrough in dismantling the syndicate behind the smuggling 🧵3/3 pic.twitter.com/XxSohJNmnW

— Danyal Gilani (@DanyalGilani) January 24, 2024

The involvement of an Edible Oil factory at Port Qasim was identified, resulting in the arrest of the factory owner. This marks a significant step towards unravelling the network behind this sophisticated smuggling operation. The ongoing investigation aims to apprehend other members of the gang and determine the extent of the losses incurred over time.

Faiz Ahmad Chadhar commended the success of the operation, emphasising Customs Intelligence's unwavering commitment to combating fuel smuggling.

Despite limited resources, he praised the Director of Customs Intelligence Karachi and his team for their effective efforts in preventing smuggling activities.