Pakistan’s oil sector looks at new tracking system to prevent smuggling

ISLAMABAD: Pakistan’s oil sector is gearing up for improvements in transparency and efficiency. The Oil and Gas Regulatory Authority (OGRA) recently hosted a workshop to discuss how to implement a track and trace system.

The event organised with the Federal Board of Revenue (FBR), the Oil Companies Advisory Council (OCAC) and the Oil Marketing Association of Pakistan featured presentations from top tech experts.

OGRA’s Chairman highlighted the importance of a solid tracking system to prevent financial losses and improve accountability, especially during tough economic times. He stressed that such a system is key to protecting the country’s finances, curbing illegal activities, and boosting the oil sector’s integrity.

The FBR’s Director General of Reforms and Automation also spoke, pointing out the need for the oil sector to adopt track and trace technology, similar to what other industries have done. He mentioned that efforts to fight smuggling and illegal trade have already resulted in the closure of over 1,200 illegal fuel pumps.

The DG further stressed strict enforcement measures, with penalties of up to Rs10 million and the seizure of illegal products for those involved in unlawful practices.

He urged Oil Marketing Companies (OMCs) to work closely with OGRA to find the best technologies, like RFID and Automated Tank Gauging Systems (ATGs), and propose timelines and cost-effective solutions for use at petrol pumps and in tank lorries.

“This is a crucial time for the country, and it’s vital that we collaborate to stop smuggling and illegal trade, securing both the industry and national interests,” he said.

The workshop is part of OGRA’s ongoing efforts to adopt digital solutions that enhance transparency and promote sustainability in Pakistan’s oil industry.

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