Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
No Result
View All Result
Home Breaking News

Pakistan intensifies crackdown on Rs135b petrol adulteration scam

byCT Report
11/09/2026
in Breaking News, Lahore, Latest News, Slider News
Share on FacebookShare on Twitter

LAHORE: The government has intensified its crackdown on an alleged Rs. 135 billion petrol adulteration racket involving the import of Light Aliphatic Hydrocarbon Solvent (LAHS), a highly flammable petroleum-related substance suspected of being mixed with petrol and sold through the domestic fuel supply chain.

According to Customs Intelligence findings cited in reports, nearly 900 million litres of LAHS were imported into Pakistan in less than three years. Investigators suspect that a significant portion of the solvent may have been diverted from legitimate industrial use for petrol adulteration.

You might also like

Cement Sales Rise 7% in September 2026

03/10/2026

Pakistan plans to import 26 LNG cargoes for winter

03/10/2026

The alleged scheme could have caused losses of around Rs. 135 billion, including duties and taxes.

LAHS has legitimate industrial applications, but authorities have raised concerns over its classification, handling and possible misuse because of its petroleum characteristics and low flash point.

Officials have argued that the product falls under the category of dangerous petroleum products and should therefore be subject to stricter licensing and regulatory controls. Customs valuation rules recognize LAHS under HS Code 2710.1250.

The investigation has focused on consignments entering Pakistan through the Taftan-NLC Dry Port in Quetta.

Authorities reportedly noticed a sharp increase in solvent imports, raising questions over whether declared industrial demand could justify the scale of shipments.

A government committee subsequently noted that the surge in imports, along with a significant price difference compared with petrol, meant that the use of LAHS as a petrol adulterant could not be ruled out.

Authorities reportedly examined 36 importers and found 26 questionable or non-genuine addresses. Investigators are now looking into how the companies obtained tax registrations and whether supporting documents, including lease agreements and utility bills, were properly verified.

The investigation also covers alleged misdeclaration of HS codes, the use of industrial-trading categories, and the possible involvement of front persons and clearing agents.

The crackdown intensified after the Prime Minister’s Office intervened on July 29 following reports from Customs Intelligence. Authorities stopped the clearance of hundreds of tankers while reviewing import licences and related documentation.

Reports indicate that 807 tankers, including 160 Iranian transit tankers, were held at the NLC Dry Port in Quetta.

The issue has also attracted parliamentary attention. A Senate committee discussed hundreds of LAHS consignments and questioned whether the material should formally be classified as a petroleum product.

The matter was referred to the Ministry of Commerce, while lawmakers called for greater oversight of the import and regulatory process.

Beyond the potential revenue impact, authorities have raised concerns about the quality of petrol allegedly containing LAHS. Investigators said the solvent does not meet the required Research Octane Number (RON) specifications for petrol.

Earlier testing cited by Customs authorities reportedly found fuel containing solvent that failed to meet Oil and Gas Regulatory Authority (OGRA) specifications, raising concerns about potential engine damage and higher maintenance costs for consumers.

The government has also faced challenges over the handling of detained or confiscated LAHS. In 2025, authorities considered offering confiscated solvent to refineries for processing, with officials noting that testing individual tankers could be expensive.

More recently, Pakistan Customs listed overstay consignments of LAHS and white spirit at Taftan and the NLC Dry Port Quetta for auction, highlighting the continuing administrative challenge of disposing of detained cargo.

Trade records also show continued LAHS imports from Iran and other countries under HS Code 2710.1250, including tanker shipments recorded during 2025 and 2026.

The ongoing investigation is expected to focus on the classification of LAHS, verification of its declared end use and monitoring of future imports to prevent its potential diversion into the domestic fuel supply chain.

Related Stories

Cement Sales Rise 7% in September 2026

byCT Report
03/10/2026

ISLAMABAD: Pakistan’s cement dispatches increased by 5.95% year-on-year to 4.621 million tons in September 2026, driven mainly by stronger domestic...

Pakistan plans to import 26 LNG cargoes for winter

byCT Report
03/10/2026

KARACHI: The government plans to procure 25 to 26 LNG cargoes from November to February to meet increased gas demand...

Islamabad Customs seizes Rs5.41b narcotics consignment near M-2

byCT Report
03/10/2026

ISLAMABAD: Collectorate of Customs Enforcement has seized narcotics and other items worth approximately Rs5.41 billion during an intelligence-based operation near...

Atif Ikram calls for joint strategy to expand share of Asia-Pacific in global textile trade

byCT Report
03/10/2026

KARACHI: President Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Atif Ikram Sheikh called for a joint Asia-Pacific strategy...

Next Post

UK Bank BII plans major investment in Pakistan

  • Terms and Conditions
  • Disclaimer

© 2011 Customs Today -World's first newspaper on customs. Customs Today.

No Result
View All Result
  • Transfers and Postings
  • Latest News
  • Karachi
  • Islamabad
  • Lahore
  • National
  • Chambers & Associations
  • Business
  • About Us

© 2011 Customs Today -World's first newspaper on customs. Customs Today.