ISLAMABAD: More than a year after authorities uncovered a massive Rs135 billion scam involving illegal imports of Light Aliphatic Hydrocarbon Solvent (LAHS), a highly inflammable chemical used to adulterate petrol, the issue remains unresolved.
An inter-ministerial committee, formed to probe the affair, has now directed the Customs Department to auction 62 seized solvent trucks and finalize the disposal of remaining consignments within three weeks.
The decision was taken during the second meeting of the Committee on Illegal Import of LAHS/White Spirit, held at the Ministry of Energy (Petroleum Division) under the convenorship of the Minister for Petroleum. The meeting was attended by representatives from the Federal Board of Revenue (FBR), Oil and Gas Regulatory Authority (OGRA), Department of Explosives (DoE), and the Ministries of Industries and Defence Production, along with law enforcement agencies.
Officials briefed the committee that while the ban on land-based imports of LAHS remains in force, hundreds of seized consignments continue to pile up at border points — a stark reminder of the scandal first reported in August 2024, when authorities intercepted over 800 tankers carrying the dangerous petrol adulterant imported in violation of the Petroleum Act 1969 and Petroleum Rules 1937.
At that time, the Prime Minister’s Office had intervened to stop the illegal shipments through the Taftan–NLC Dry Port, exposing how importers were misdeclaring the solvent as petrol, allegedly with the complicity of customs officials and laboratory staff.
During the latest meeting, Customs officials informed that 62 truckloads of confiscated LAHS have cleared adjudication and are free of litigation, while 25 consignments are still under court proceedings. The committee authorized Customs to hold open auctions of the cleared stock at a 10–15% discount from the prevailing naphtha price, and tasked the Department of Explosives with assisting in the swift disposal of pending cases.
Additionally, the committee decided that 17 trucks imported under valid licenses could be released only after end-user verification by the DoE. OGRA, in coordination with the Ministry of Industries and Production, was asked to develop a track-and-trace mechanism to monitor the production, sale, and consumption of industrial solvents to prevent future misuse.
To address data gaps, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) will help compile industrial consumption data, while FBR and Customs will share import records from June 2025 onward. Refineries, including ENAR (under the Strategic Plans Division), have been instructed to submit monthly production and sales reports to the Petroleum Division.
The committee also expressed concern over potential misuse of other solvents, such as White Oil, Heptane, Toluene, Xylene, and Methanol, which can also be used for fuel adulteration. OGRA has been tasked to analyze their chemical composition and pricing to determine whether tighter regulations are needed.
The Additional Secretary (Policy) of the Petroleum Division will now prepare a comprehensive regulatory framework for solvent imports and industrial use, while the Secretary Petroleum will review progress and recommend further actions in the next session.
The persistence of the LAHS issue, once termed a “national-level petroleum scandal” underscores bureaucratic inertia and weak enforcement, which have allowed the case to linger for more than a year. The original 2024 inquiry found that over 900 million litres of solvent were imported over three years, causing Rs135 billion in losses to the national exchequer through tax evasion and adulteration.
While the latest directives aim to clear stockpiles and tighten controls, officials concede that the broader challenge of accountability for those behind the scam remains unresolved.
The Prime Minister reconstituted the committee after the earlier one completed its findings following certain complaints. Interestingly, the same committee has now been reconstituted and has already held its second meeting on the matter.
