ISLAMABAD: Pakistan Customs has uncovered an alleged petroleum tax fraud scheme involving imported gasoline, with investigators estimating losses to the national exchequer at Rs1.259 billion (about $4.5 million).
Authorities said the investigation exposed what they described as one of the country’s largest petroleum tax fraud cases.
According to a First Information Report (FIR), suspects allegedly removed 6,975.454 metric tons (9.64 million liters) of imported RON-92 gasoline from Customs-bonded warehouses without paying customs duties, taxes or the Petroleum Levy.
Investigators alleged the network used fake Safe Transportation (ST) Goods Declarations, forged documents and false declarations to divert fuel into the domestic market while bypassing legal import procedures.
Pakistan Customs said the alleged fraud caused an estimated Rs1.259 billion loss to government revenue.
Officials said investigators uncovered the scheme through intelligence-led operations, analysis of Pakistan Revenue Automation Limited (PRAL) and WeBOC digital records, document verification and physical stock reconciliation. They said the investigation revealed significant discrepancies between official records and the actual fuel inventory stored in bonded warehouses.
Authorities have registered FIR No. 01/2026 against M/s Flow Petroleum (Pvt.) Ltd., its directors Muhammad Waris and Muhammad Asif, along with other suspects, under the Customs Act, 1969.
The FIR also examines the alleged role of Pak-Arab Pipeline Company (PAPCO) in connection with fuel transported through the White Oil Pipeline. Officials said the investigation remains ongoing.
Authorities said they would pursue those responsible through the legal process and seek to recover the alleged losses to the national exchequer.
The allegations have not been tested in court, and those named in the FIR have not publicly responded to the accusations.
