Govt losses Rs6b annually for sale of Iranian petrol

ISLAMABAD—Smuggling of petroleum products into Pakistan has boomed during the last two years, apparently because of an all-time increase in petroleum prices in the country’s history.
According to an estimate by the ministry of petroleum, the government looses Rs 5 to Rs 6 billion tax revenue per annum due to smuggled petroleum products. The World Bank has advised the government of Pakistan to develop a full proof system to stop this practice in the best interest of all the stakeholders of this sector.
According to a report of Weekly “Pulse”, smuggling of petroleum products from Iran has a long history. Balochistan and Sindh were the main markets for the smuggled products, but, during the last two years, the market for smuggled oil products has expended to Punjab and NWFP. A wide range of smuggled lubricant brands is found in every city of Pakistan. The only advantage of Iranian oil products is the cheaper prices. For instance, one liter of Iranian petrol costs half of the market price of one liter petrol. Moreover, increased prices of petroleum products in the market have increased the demand for smuggled products.
A survey conducted by the weekly Pulse reveals some interesting facts as well as the connivance of concerned government agencies. Iranian petrol and diesel are openly available in several parts of Karachi, especially which touch the kachchi abadis. The Iranian petrol is much cheaper than the one sold at the petrol pumps. One liter of Iranian petrol is available at Rs 34 to Rs 38 in Lyari, North Nazimabad, New Karachi, Nusrat Bhutto Colony, SITE and Organi town areas, whereas a liter of Iranian diesel is being sold at Rs 28 to Rs 34 in respective localities.
In Hub, the vicinage Balochistan town of Karachi, one liter petrol and diesel are available at Rs 32 to Rs 36, and Rs 26 to Rs 32 respectively. The survey reveals that in Karachi, almost 50 per cent of public transporters use Iranian petrol and diesel, while rest have converted their vehicles into CNG or LPG.
The report quoted Security sources that there are different routes of oil smuggling from Iran to different parts of Pakistan. For Pushtun belt of Balochistan, the oil products enter Taftan area of Pakistan, which borders with Zahidan province of Iran. From Taftan, the smuggled products proceed to Dalbadin, Noshki, and then Quetta.
Iranian petrol and diesel are being sold in Quetta at every corner and street with impunity. One liter of smuggled petrol and diesel are available in Quetta at Rs 30 to Rs 33, and Rs 32 to Rs 33 respectively. Smuggled petroleum products also enter Pakistan via Afghanistan i.e. from Kandahar to Chaman. From Chaman, they proceed to Quetta, Loralai, Qila Abdullah and other Pushtun dominated districts of this rugged province. In rest of Balochistan, Iranian petroleum products reach via Panjgoor, Kaitch, Mand, and Gawadar areas.—APP