To curb illegal sale of petroleum products, amendments suggested in Petroleum Act 

ISLAMABAD: In a bid to stop the illegal sale of petroleum products and compliance of international standards, the petroleum division of the Government of Pakistan (GoP) has asked the Cabinet Committee for Disposal of Legislative Cases (CCLC) to grant approval to the proposed amendments in the Petroleum Act, 1934.

Sources confided in Profit that the petroleum division has forwarded amendments in Petroleum Act 1934 to CCLC’s consideration, with the hope that if CCLC approves it, the federal cabinet might approve it as a new law regulating petroleum products.

The amendments seek to stop the illegal sale of petroleum products in the country, curb avoidable fire incidents caused by petroleum cargo, ensure compliance with the international standards and increase penalty amount up to Rs10 million in case of loss of human life. 

The CCLC is likely to grant its approval in this regard during its next meeting, said sources.

The Lahore High Court (LHC), in a case regarding fire incident of a petroleum tank lorry in Ahmedpur East in Bahawalpur district, had earlier directed the federal government to revisit the law that mandated a penalty of Rs500 for non-renewal of license in terms of Section 23 of the Petroleum Act, 1934. On November 24, 2017, the Cabinet Division had conveyed that all ministries and divisions, in consultation with the law and justice division (L&JD), should make amendments in respective acts/rules and replace the words federal government with appropriate authority(ies).

According to section 23 of Petroleum Act, 1934, a penalty of Rs500 will be imposed in case of non-renewal of licenses and oil marketing companies (OMCs) and dealers, after the implementation of the proposed act, will not be able to illegally sell the petroleum products in the country.   

According to available documents, following amendments have been proposed to be incorporated in the Petroleum Act, 1934: 1) Insertion of word “Sale” in certain sections of the Act, as per the comparative list to stop the illegal sale of petroleum products 2) Petroleum products have been classified as per international standards 3) iii The definition of “Sale”, “OMC” and “Dealers” are added to avoid any confusion.

Profit also learnt that after the proposed amendments, duly vetted by law and justice division, the Act will be called the Petroleum (Amendment) Act, 2020, which will come into force at once. The offender of this act will be punishable with fines up to Rs10 million rupees in case of loss of human life or serious injury to a person in an accident. 

Similarly, offences punishable under this new Act will be triable by a judicial magistrate of the first class.  

 

Ahmad Ahmadani
Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected].

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