ISLAMABAD: Amid strong opposition from Balochistan senators, the Senate Standing Com­mittee on Petroleum on Monday reluctantly cleared with narrow majority vote a government bill — The Petroleum (Amendment) Act, 2025 — already passed by the National Assembly last week to digitalise petroleum products at every stage.

Senators Maulana Abdul Wa­­say of JUI-F and Manzoor Kakar of BAP from Balochistan alleged the bill would deprive citizens of a livelihood as authorities plan crackdown on small petroleum related businesses with closures and heavy fines, open floodgates of corruption, thus further alienating the people of Balochistan while large tankers would keep flowing smuggled products across mainland.

PML-N Senator Sadia Abbasi also initially appeared unimpressed by the proposed bill and suggested a meeting with FBR and Customs authorities for the senators from Balochistan. She said there was no point in passing the bill while senators from Balochistan opposed it and recalled that a bill about federally administered tribal areas (Fata) was also passed in the past under US pressure. She said now everybody was saying it was pas­sed reluctantly under US pressure. She cautioned against rushing the legislation, urging wider consultation with the petroleum industry and provincial stakeholders. “This bill directly affe­cts common people in Baloch­is­tan. We must not pass it in haste,” she said.

Senators from Balochistan resist bill over ‘livelihood concerns’

Maulana Wasay said it was an open secret how large tankers of 65,000 litre petroleum products travelled from border to Punjab and who were their beneficiaries. He described the bill as economic devastation for poor families in Balochistan, where, he said, 5,000 to 6,000 small vehicles transporting fuel had already been impounded. “These vehicles are the livelihood of poor people. If this bill passes, what will they do?” he asked, warning that harsher enforcement would fuel resentment in an already volatile province.

Senator Kakar said the vehicles used in transportation of Iranian oil products were issued ‘tokens of movement’ and questioned secretary petroleum if he had the data about such tokens who expressed his ignorance. Mr Kakar said products coming from the border passed through 100 security posts and their carriers paid fixed amounts at every post.

Power to seal filling stations

The petroleum division briefed the committee that the bill introduced six new clauses aimed at curbing rampant smuggling of petroleum products and empowered authorities to seal filling stations selling smuggled fuel, seize related equipment, and take action against vehicles involved in the trade and impose fines.

The petroleum secretary requested the senators to pass the bill promising to address their concerns through the enabling rules. He said bill granted deputy commissioners magisterial powers to handle confiscated goods and penalise violators. He said the crackdown would primarily target large oil tankers carrying over 40,000 litres of smuggled fuel.

He said smuggling of petroleum products worth billions of rupees was draining the economy and undermining government revenues, especially after the increase in petroleum levy (about Rs81 per litre at present), which had increased the incentive for smuggling. “The real beneficiaries are not small vehicle owners but powerful smuggling networks.

He assured the senators that licenced vehicles would not be targeted and pledged to incorporate the committee’s recommendations within three days.

Published in Dawn, August 19th, 2025