Pakistan’s authorities have launched investigations into alleged irregularities in oil storage licensing and discrepancies in petroleum stock reporting, raising concerns over regulatory compliance in the energy sector.
The Federal Investigation Agency (FIA), the country’s main anti-corruption body, is leading multiple inquiries focused on how oil storage licences were issued, renewed, and monitored, particularly in Karachi’s petroleum storage terminals.
According to investigators, some licences may have been granted or extended in violation of established petroleum safety regulations. Officials are also examining whether proper procedures were followed before approvals were issued, and why certain facilities were not suspended despite findings suggesting non-compliance.
As part of the probe, former and serving officials from the petroleum and explosives regulatory departments have been asked to submit explanations and provide documentation regarding their roles in licensing decisions. The inquiries also review whether any undue advantages were granted to terminal operators.
The investigation further extends to the Oil and Gas Regulatory Authority, which oversees regulation of the country’s oil and gas industry, amid concerns that reported warnings and stock anomalies were not properly addressed.
In a parallel case, the FIA is also examining allegations that an oil marketing company may have misreported petroleum stock levels at storage facilities in Karachi, Pakistan’s largest commercial hub.
Inspection findings reportedly revealed differences between declared and actual fuel inventories, including diesel, petrol, and high-octane components. These discrepancies have raised suspicions of possible stock concealment or data manipulation.
Authorities are also reviewing price differential claims linked to fuel imports and sales, questioning whether billions of rupees were disbursed based on unverified documentation. The inquiry also looks into whether imported petroleum cargoes were properly cleared for taxation before being released into the local market.
The investigation remains ongoing, with officials expected to take further action depending on the outcome of the findings.
