Pakistan launches mobile app to combat smuggled petroleum sales at 11,500 fuel stations

Pakistan has been developing a Geographic Information System-based mobile application to curb sale of smuggled petroleum products at 11,500 fuel stations across the country, a senior official told Nukta on Thursday.

The app is being developed by the Federal Board of Revenue (FBR) on the prime minister's instructions.

He explained that the government would be able to detect unauthorized petrol pumps through the app. In addition, 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 interior ministry, smuggling poses a major challenge for Pakistan as PKR 400 billion worth of petroleum products are being brought into the country illegally.

Separately, the interior ministry has also directed the provincial governments to seal 1,310 illegal retail outlets, oil agencies, and petrol pumps across the country. A document shared with Nukta shows 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. These cover the installation of the Remote Terminal Unit (RTU) and Auto Tank Gauging (ATG) /Forecourt Controller.

Under the former, the authority can use GSM SIM-based technology to monitor sales from dispenser nozzles. On the other hand, the latter can monitor sales through nozzles for reconciliation as well as inventories at the pumps' storage tanks.

According to sources in the Petroleum Division, 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.