The All Pakistan Petroleum Dealers Association (APPDA) has warned against adopting the proposed Petroleum (Amendment) Act 2025, arguing that while the legislation aims to curb fuel smuggling, it could penalise the law-abiding petroleum retailers and destabilise the energy supply chain.
Speaking to fuel station owners on Friday, APPDA spokesman Hassan Shah said the bill granted sweeping and unchecked powers to local administrations such as assistant commissioners and deputy commissioners, without judicial oversight or regulatory checks. Such provisions "leave room for coercion, misuse and arm-twisting of dealers to meet arbitrary enforcement targets", he said.
"Petroleum dealers have invested billions in infrastructure across Pakistan. This bill threatens the investment by granting executive powers without accountability. That's not regulation; it's intimidation," Shah stated.
Pakistan has over 11,800 registered petrol pumps, of which more than 83% are being operated by independent retailers. These businesses function as commission agents under the licensed oil marketing companies, with no role in fuel import, production or adulteration.
Despite this, the proposed amendments place strict liability on the retailers and empower district officials to seal filling stations, impose heavy fines and confiscate assets, often without proof of wrongdoing or prior notice.
"If passed in its current form, this bill will make the dealers liable for issues beyond their control, while leaving the real culprits, smugglers and unregulated distributors untouched," Shah remarked.
The association's concerns reflect the escalating fuel smuggling into Pakistan. Recent estimates show that over 10 million litres of Iranian petrol and diesel are smuggled into the country daily, causing annual tax revenue losses of over Rs227 billion.
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