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.
In Gawadar, one liter of petrol and diesel are being sold at Rs 25 to Rs 30 and Rs 24 to Rs 28 respectively. In bordering areas of Taftan, Kharan and Kaitch, the prices are much lower. One liter of petrol and diesel in these areas are available at Rs 20 only.
It quoted sources that the security agencies deployed at the bordering routes are fully involved in smuggling of Iranian petrol Petroleum products are usually smuggled in the wee hours raising the possibilities of major accidents.
The most horrible fact of this business is the dumping and unloading of smuggled petroleum products. Petrol and diesel are dumped in open space by shopkeepers without taking any safety measures, and supplied through canes.
“Everybody knows where this petrol or diesel comes from”, a security official said. “We can't do anything to stop it as big fish are involved in this mess”, he maintained.
The smuggled petroleum products have made inroads into NWFP and Punjab too. A few weeks ago, officials of the Sarhad Petroleum Cartage and the Dealers Association warned that they would start selling substandard smuggled petroleum if the government did not stop its sale in the province.
According to sources, petrol sold in Peshawar, Swat, Mardan, Kohat and other cities of the province is smuggled from Iran, Iraq and Central Asia via Afghanistan decreasing the sales at most of the gas stations has decreased to less than 50 liters per day.
Owners of gas stations have to face a lengthy procedure to install gas stations. They have to get no-objection certificates from a number of provincial departments. On the other hand, the seller of smuggled oil products just needs to buy some small containers and grease the palms of local police.
But, irrespective of the fact that the smuggling of oil products have been causing heavy losses to the national exchequer, the growing inflation, and exorbitant increase in petroleum prices have compelled the people to go in the wrong way.
Ironically, the so-called people-friendly government is not ready to slash the petroleum prices in spite of the fact the prices are registering a constant decline in the international markets. | 
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