Decrease in POL products' prices: Steps taken to curb cross-border smuggling

RECORDER REPORT

ISLAMABAD: On the request of the Ministry of Petroleum and Natural Resources, the Federal Board of Revenue has taken strict measures to check cross-border smuggling of petroleum products in view of considerable decrease in the POL products prices in Pakistan.

In this connection, the FBR has issued instructions to the Collector of Customs, Model Customs Collectorates (MCCs) here on Monday.

According to the FBR instructions to the field formations, the Ministry of Petroleum & Natural Resources (Directorate General of Oil), Islamabad have intimated that due to considerable decrease in Petroleum prices consumption of some POL products has increased recently. Consequently, it is apprehended that some unscrupulous parties may be involved in cross border smuggling of POL products due to higher prices in terms of currency exchange rate etc. which may cause shortage of POL products in the local market. It is therefore, warranted that concerned authorities may keep close vigilance on the borders to monitor and check such cross border movement, the FBR said.

In view of decreasing prices of the POL products, Collectors of Customs may exercise maximum vigilance to eliminate chances of possible smuggling of POL products which may cause huge loss to national exchequer on one hand and shortage of petroleum products on the other.

The Ministry of Petroleum has informed the FBR that the Economic Coordination Committee of the Cabinet vide its decision No.ECC-55/107/2012 dated May 15, 2012 approved price adjustment of POL products on fortnightly basis from monthly basis. In pursuance of the ECC decision, the prices of petroleum products considerably decreased with effect from June 16, 2012 and government provided relief to masses.

The consumption of some products has significantly increased recently, therefore it is apprehended that some unscrupulous parties may be involved in cross border smuggling of POL products due to higher prices in terms of currency exchange rate etc. This will obviously cause shortage of POL products within the country, which are deficit, and regularly imported in huge quantity. It has been requested that the FBR should instruct the concerned authorities to keep close vigilance on the borders to monitor and check any such cross border, movement, the Ministry of Petroleum added.