Around 7,000 petrol stations operating illegally, says AGP audit

ISLAMABAD: The latest audit report from the Auditor General of Pakistan (AGP) has brought to light the presence of approximately 7,000 illegal petrol stations operating across the country, raising serious questions about the performance and oversight of the Oil and Gas Regulatory Authority (OGRA).

The damning audit report unveiled the extent of OGRA’s shortcomings, which have allegedly contributed to the flourishing of hoarding and smuggling of petroleum products within the industry.

The lack of effective action from OGRA has allowed illegal activities to thrive, casting doubts on the regulatory body’s effectiveness.

One particularly troubling discovery was the joint storage of crude oil by Oil Marketing Companies (OMCs), which the report highlighted as facilitating unscrupulous activities in the sector.

The findings also revealed that 25 oil marketing companies were granted licences by OGRA despite not fulfilling their mandated storage capacity, which potentially compromises the availability and regulation of petroleum products in the country, according to Sama.

Moreover, the audit report implicated certain oil marketing companies in unauthorized buying and selling of oil, pointing to a grave lack of oversight and compliance within the industry.

Such practices not only undermine the integrity of the market but also pose serious risks to the public and the environment.

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Another detrimental revelation highlighted by the report was OGRA’s decisions that caused losses to local refineries by permitting diesel imports beyond their assigned quotas, significantly impacting the domestic oil refining industry.

Additionally, the report raised concerns about the alarming practice of selling petrol in bottles and drums across the country, posing a significant risk to public safety and the environment.

The delivery of petroleum products in non-standard tanks was flagged as a major concern, as it can lead to potential accidents and environmental hazards.

The audit report’s findings underscore the urgent need for stringent measures to tackle the rampant illegal operations in the petrol industry and demand greater accountability from OGRA to ensure the nation’s energy sector operates within the confines of the law and adheres to necessary safety and environmental regulations.