Key Developments in the Petroleum (Amendment) Bill, 2025
The National Assembly Standing Committee on Petroleum recently approved the Petroleum (Amendment) Bill, 2025, which aims to tackle fuel smuggling and its illegal distribution. The proposed legislation introduces stringent measures, including hefty fines of up to Rs100 million for those involved in smuggling activities, seizure of vehicles and equipment used in the trade, and the implementation of digital monitoring systems.
The committee meeting was initially chaired by Syed Mustafa Mehmood, MNA. However, due to his absence from the country, he sought permission to leave the proceedings. In accordance with rule-216 of the Rules of Procedure and Conduct of Business in the National Assembly, 2007, the committee unanimously elected Syed Naveed Qamar, MNA, to preside over the remaining portion of the meeting.
Detailed Consideration of the Bill
After the chairmanship transition, the committee thoroughly examined the Petroleum (Amendment) Bill, 2025 (Government Bill) and recommended its passage by the National Assembly with certain amendments. The bill outlines a range of penalties, including fines of up to Rs100 million for individuals involved in smuggling, confiscation of vehicles and equipment used in the trade, and strict enforcement against unauthorized fuel storage and sales. Additionally, a fine of Rs10 million along with equipment confiscation has been proposed for illegal fuel storage and sale.
Owners operating petrol stations after their licenses have been canceled would face a fine of Rs1 million. Machinery and storage tanks linked to smuggling activities would also be seized. These provisions are intended to deter illegal fuel trading and ensure compliance with regulatory standards.
Digitization and Transparency Initiatives
Petroleum Secretary Momin Agha provided an overview of the ministry's plan to modernize the oil sector through digitization. He highlighted that the ministry has been working for four months on a system designed to streamline the petroleum supply chain. The new track-and-trace system will monitor 17,000 tankers from depots to petrol pumps. This initiative, developed in collaboration with the Punjab IT Board, is expected to enhance transparency and reduce leakages within the system.
However, lawmakers raised concerns about the cost of implementing this technology and its effectiveness in curbing smuggling. Agha stated that oil marketing companies would bear the expenses, but Qamar cautioned that the burden might ultimately fall on consumers. Some members expressed skepticism, citing past issues with tracking systems. For instance, Committee member Asad Alam Niazi mentioned an incident where goods tagged under a UN program were smuggled back into Pakistan via Quetta despite being "tracked." Shahid Khattak criticized the Petroleum Division for lacking a clear implementation plan.
Regulatory Updates and Industry Needs
The bill also aims to update outdated regulatory provisions to align with modern industry practices, including the integration of IT-based monitoring. OGRA Chairman Masroor Khan emphasized the necessity of these legal changes, stating that existing regulations were "too old to address current challenges."
While most members supported the need for stronger legislation, they urged the government to ensure transparency, prevent misuse, and protect the public from additional financial burdens. Khattak noted, "We are always in a hurry to act, but without a clear idea of what we want to achieve."
Sub-Committee Report and Recommendations
A sub-committee established under the chairmanship of Syed Naveed Qamar submitted its report to the main standing committee, which adopted it and recommended that its proposals be forwarded to the Petroleum Division for further action. The sub-committee included Syed Naveed Qamar, MNA (Convener), Asad Alam Niazi, MNA, Muhammad Moin Aamer Pirzada, MNA, and Gul Asghar Khan, MNA.
The sub-committee's Terms of Reference included discussing and formulating new guidelines for the efficient utilization of Corporate Social Responsibility (CSR) funds, Production Bonuses, and Training Funds for capacity-building. The objective was to ensure transparency and provide relief to local communities.