Smuggled petro products at 11,500 fuel stations: FBR developing application to curb sale

ISLAMABAD: The Federal Board of Revenue (FBR) is developing a Geographic Information System-based mobile application to curb sale of smuggled petroleum products at 11,500 fuel stations across the country.

Sources told Business Recorder that the FBR has proposed digitization of petrol pumps in all major cities of the country. In this regard, the app is being developed by the FBR on the directions of the Prime Minister. The FBR would be able to detect unauthorized petrol pumps with the help of this app.

Moreover, the oil marketing companies (OMCs) would be required to give the mobile application real-time information on the exact position and layout of all licensed petrol pumps in Pakistan.

According to the Ministry of Interior, smuggling poses a major challenge for Pakistan as Rs 400 billion worth of petroleum products are being brought into the country illegally.

The Interior Ministry has also directed the provincial governments to seal 1,310 illegal retail outlets, oil agencies, and petrol pumps across the country.

The data revealed that there are 749 illegal outlets in Punjab, 250 in Khyber Pakhtunkhwa, 183 in Sindh, and 128 in Balochistan.

The FBR has also suggested digitalizing fuel stations following recommendations by the ministries of interior and energy to use technology solutions. The proposal included installation of the Remote Terminal Unit (RTU) and Auto Tank Gauging (ATG) /Forecourt Controller.

The regulatory authority can use GSM SIM-based technology to monitor sales from dispenser nozzles. The government can also monitor sales through nozzles for reconciliation as well as inventories at the pumps' storage tanks.

In addition to confiscating the equipment of authorized petrol pumps involved in the sale of smuggled petroleum products, the government is also considering amending the Petroleum Act 1934, to allow district administrations to seize and destroy the products and equipment of petrol pumps without a valid authorization, sources added.

Copyright Business Recorder, 2024