OGRA pushes for digital solutions to curb illegal trade in Pakistan’s oil sector

ISLAMABAD: In a significant move to enhance transparency, accountability, and operational efficiency in Pakistan’s oil sector, the Oil and Gas Regulatory Authority (OGRA) organised a workshop focused on implementing effective track and trace technology .

The event, conducted in collaboration with the Federal Board of Revenue (FBR), the Oil Companies Advisory Council (OCAC), and the Oil Marketing Association of Pakistan (OMAP), brought together renowned solution providers from across the country to present potential digital solutions for the sector.

The OGRA chairman highlighted the critical role a robust track and trace system could play in preventing financial leakages, enhancing accountability, and promoting economic stability.

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“Implementing a comprehensive tracking system is essential, especially in challenging economic times, to protect the national exchequer, curb illegal activities, and boost the industry’s overall integrity,” he noted.

The FBR Director General (reforms and automation) underscored the need for a track and trace solution for the oil sector akin to systems already implemented in other industries.

He shared that the FBR and Customs authorities have intensified efforts against smuggling and illegal trade by leveraging advanced technology and have recently closed over 1,200 illegal fuel pumps.

He also emphasized strict enforcement, including penalties of up to Rs10 million and seizure of illicit products for those engaged in illegal activities.

The DG urged Oil Marketing Companies (OMCs) to work with OGRA to identify appropriate technologies, such as RFID and Automated Tank Gauging Systems (ATGs), and to propose feasible timelines and cost-effective solutions for implementing these technologies on tank lorries and petrol pumps.

“The country faces challenging times, and we must collaborate to implement a system that deters smuggling and illegal activities, thereby safeguarding both industry interests and national priorities,” he stated.

The OGRA said that it was committed to adopting digital solutions that foster transparency, sustainability, and long-term resilience in Pakistan’s oil industry.