Operation without valid storage: LHC upholds district govt powers to seal petrol pumps

Published
A file photo of the Lahore High Court. — Photo courtesy: lhc.gov.pk/File
A file photo of the Lahore High Court. — Photo courtesy: lhc.gov.pk/File

LAHORE: The Lahore High Court has upheld powers of the district government to seal petrol pumps operating without valid storage.

Justice Raheel Kamran announced the judgment deciding multiple petitions, all raising a common question of law.

The petitioners had assailed the actions of the district administration, price control magistrates and enforcement officials, arguing that their petrol pumps were sealed or threatened with sealing on the ground that they had not obtained or renewed Form-K, a storage licence issued by the Department of Explosives.

Counsel for the petitioners contended that they were running lawful businesses after obtaining requisite approvals from relevant departments and that the impugned actions were arbitrary, unlawful and without jurisdiction.

They argued that matters relating to Form-K and regulatory compliance fall within the exclusive domain of the Oil and Gas Regulatory Authority (Ogra) and its notified officers. They argued that the district administration or other enforcement officials had no authority to take coercive measures against them.

They further submitted that the issuance and renewal of Form-K was the contractual and statutory responsibility of the concerned oil marketing companies (OMCs) under dealership agreements, the Ogra Ordinance, 2002 and the Pakistan Oil Rules, 2016.

They claimed that any delay or failure was attributable to the OMCs and not the dealers, who could not be penalised for the omission of a third party.

Opposing the petitions, an assistant advocate general Punjab and an assistant attorney general for the federation maintained that Form-K is not a mere procedural requirement but a statutory storage licence issued under the Petroleum Act, 1934 read with the Petroleum Rules, 1937.

They argued that no person can lawfully store or sell petroleum to the public without such a licence.

After examining the relevant statutory framework, Justice Kamran held that the petitioners’ core contention — that the district administration lacked jurisdiction — was misconceived.

The judge noted that the Petroleum Act, 1934 and the Petroleum Rules, 1937 clearly mandate that petroleum can only be stored and sold in accordance with the licensing regime prescribed under the law and that a valid storage licence is a condition precedent for lawful operation of a retail fuel station.

Justice Kamran held that Form-K is not a technical formality but a legal instrument through which risk management, accountability and public safety are ensured.

The judge maintained that the law positively confers coercive powers on the district administration and does not leave enforcement to implication or administrative discretion.

He clarified that Ogra’s role in licensing oil marketing companies is distinct from the regulation of petroleum storage at retail outlets, which squarely falls under the Petroleum Act and Rules.

The judge dismissed the petitions holding that the district administration is legally empowered to take such enforcement action under the Petroleum Act.

Published in Dawn, February 7th, 2026

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