ISLAMABAD: The Oil Marketing Association of Pakistan (OMAP) has warned that the Federal Board of Revenue’s newly enforced customs clearance deadlines could jeopardize Pakistan’s petroleum supply chain, urging authorities to exempt petrol and diesel imports from the regulation to prevent fuel shortages and cost escalation.
In letters sent to the Ministry of Finance, the Federal Board of Revenue (FBR), and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), OMAP cautioned that the new rule, issued under the Customs Act 1969, mandates Goods Declarations (GDs) to be filed within 20 days of vessel arrival — a requirement it described as incompatible with the operational dynamics of petroleum logistics.
OMAP Chairman Tariq Wazir Ali emphasized that petroleum imports follow a tightly regulated and time-sensitive process involving multiple agencies such as the Oil and Gas Regulatory Authority (OGRA), the Petroleum Division, and port authorities. He noted that the pricing of petroleum products like motor gasoline and high-speed diesel is finalized 15 to 20 days after vessel discharge, leaving importers unable to comply with the new 20-day GD filing deadline.
The association (OMAP) said the rigid application of the rule could result in procedural delays, demurrage costs, and penalties that would ultimately increase retail fuel prices by as much as Rs3 per litre. It added that these penalties could discourage investment in fuel import and storage infrastructure, undermining the government’s broader energy security objectives.
OMAP also highlighted that petroleum consignments are discharged into public bonded storage facilities rather than congested port terminals, meaning delayed GD filings have no impact on port efficiency. Furthermore, under Section 98 of the Customs Act, OMCs already have up to 180 days to settle duties and taxes, making the rule’s fiscal justification unnecessary.
In its communication to the FPCCI, OMAP sought the federation’s support in engaging with the FBR and the Ministry of Finance to protect the petroleum industry from potential operational disruptions. The association warned that the SRO’s blanket enforcement could impose unintended risks on Pakistan’s fuel import and distribution network, especially at a time when uninterrupted supply is vital for maintaining economic stability.
The association proposed practical measures to prevent disruption, including the exclusion of petroleum products from the scope of the new rule, extending the GD filing period for fuel consignments to at least 40 days, and reinstating the facility of provisional GD filing previously available under the One-Customs system. It also recommended extending the clearance time for non-fuel imports such as lubricants and equipment from five to ten days.
OMAP reaffirmed its commitment to compliance and cooperation with regulatory authorities but urged flexibility in implementing the policy. The association said petroleum imports represent a critical national interest that requires special consideration to prevent disruptions in the country’s energy supply network.
Chairman Tariq Wazir Ali expressed confidence that the government would address the industry’s concerns pragmatically, adding that policy coordination between the FBR, the Petroleum Division, and OGRA was essential to maintain investor confidence and ensure fuel supply continuity across Pakistan.
