KARACHI – The soaring prices of POL (petrol, oil and lubricants) have remarkably increased the sale of smuggled Iranian petrol, causing losses worth billions of rupees to the exchequer, while important government personalities are also investing in and harbouring this illegal business, sources have informed Pakistan Today.
The daily consumption of Iranian petrol has gone through the ceiling, whereas a major decline between 10,000 tonnes and 15,000 tonnes in daily consumption of locally produced POL has been reported after the government issued the announcement of price hike.
Two important political figures are reportedly investing in this illegal business and harbouring the culprits involved. These political figures are generating billions of rupees a month through this business, and have established over 28 illegal fuel stations in Lyari alone, whereas four in Bhains Colony, two in Orangi Town, and one in Khokhrapar. Between 5,000 litres and 8,000 litres of Iranian POL worth Rs 1 million are being sold daily at these illegal stations set up by government officials.
A man working at one of the illegal fuel stations said, “We are receiving hefty amounts as salary and feel no hesitation in continuing our jobs here.” The sources claimed that a high-ranking official of the provincial government has made a deal worth Rs 100 million a month with culprits involved in smuggling Iranian POL so the latter could continue running their business without any threat from the law enforcement agencies.
“Three members of a smugglers’ group met with the government official’s representative to finalise the deal. The smugglers had arrived in a Land Cruiser along with a police mobile unit that was providing them security,” the sources told Pakistan Today. The government official has made this deal with the major smugglers of Karachi, and this illegal business is now going to be legal since the city police have been prohibited from interfering in it or taking action against the culprits, they added.
The special branch of the police and other intelligence agencies have submitted reports regarding the ongoing smuggling of Iranian POL to Karachi, and also pointed out the hideouts of the culprits as well as the illegal fuel stations.
The Home Department is not taking any interest in restricting these culprits, and overlooking the reports prepared and submitted by the intelligence agencies.
Sale of Iranian petrol has become a profitable business, and more important personalities have started making investments in this venture.
The consumption of smuggled Iranian POL was between 30,000 tonnes and 35,000 tonnes in Pakistan last year, but it has increased by 15,000 litres a day in Karachi in the first two months of the current year, and further rise is expected in the future due to POL price hike.
Despite losses of around Rs 7 billion per annum in tax revenue, the government is not taking any interest in shutting this business down, and international donors, like the World Bank and International Monetary Fund, have also advised the government to take necessary action in the best interest of the stakeholders of this sector. The business of smuggled Iranian petrol is boosting up and transporters are playing a major role in this regard since they are purchasing low-cost Iranian petrol to save huge sums of money.
Though Iranian POL is harmful for the engine of the vehicles, the only advantage of these smuggled commodities is their low rate since Iranian petrol is Rs 25 to Rs 30 cheaper than local petrol. After the government had announced raising local POL prices, an increase of Rs 4 in the price of Iranian petrol in Karachi was also reported. Iranian petrol has been selling in Surjani, Baldia, Manghopir, Landhi, Orangi, Malir, Bin Qasim, Gulshan-e-Iqbal, Korangi, Lyari and other areas of the city.
Sources said that Lyari is considered the main hub of smuggled petrol, and it is believed that smuggled petrol is distributed to other parts of the city from Lyari Town where over 94 illegal fuel stations are operating. Iranian petrol was being sold for between Rs 43 and Rs 45 per litre, but after the government raised local POL prices, Iranian petrol price increased to up to Rs 53. The sources revealed that people who are consuming the smuggled Iranian POL do not belong to a specific class, but people from posh areas are also regular customers of these products.
An officer working at the head office of a local bank, who obtains Iranian fuel for his car from a fuel station near Nehal Hospital in Malir, said that local POL could not be afforded due to their high prices, which is why he prefers Iranian petrol.
Stating something similar, a young motorcyclist said that he always gives priority to Iranian petrol because his pocket money does not permit him to spend more on local fuel.
“I am a student at the University of Karachi and my father works as a labourer at the Pakistan Steel Mills. I belong to a middle-class family and we spend every single rupee after thinking it over at least a dozen times,” he added. Another customer at an illegal fuel station told Pakistan Today that he does not feel any hesitation in obtaining Iranian petrol because senior government officials are said to be involved in this illegal business themselves, and the open sale of smuggled petrol proves this.
He pointed towards a police mobile unit and said that the police are well aware of these illegal fuel stations, but they have never tried to shut them down. “Why should we feel any hesitation then?” he added.
