Govt launches nationwide drive to digitalise petrol pumps to curb smuggling

The federal government has initiated a comprehensive digitalisation drive aimed at reforming Pakistan’s petroleum sector, focusing on curbing smuggling, preventing illegal sales, and safeguarding the interests of authorised dealers. The move is part of broader reforms to integrate the petroleum value chain, from imports and refineries to transportation and retail outlets, through a robust track-and-trace system, according to a news report.

A key development in this reform is the launch of the "Raahguzar" mobile app by the Oil and Gas Regulatory Authority (OGRA). This app provides verified information on legally operating petrol pumps across the country, ensuring consumers, regulators, and stakeholders have access to authentic and up-to-date data on authorised fuel outlets.

To enhance oversight, OGRA, in collaboration with the Punjab Information Technology Board (PITB), has introduced a unified Track and Trace System for tank lorries. This digital platform integrates data from ERP systems, tank lorry movements, terminal operations, and retail outlets, offering a comprehensive view of the supply chain. 

The next phase of digitalisation will involve installing automatic gauges and digital dispensing units at petrol pumps to further streamline monitoring across the sector.

To support these digital reforms, the Petroleum Act, 1934, has been amended, introducing IT-based tracking of petroleum products and provisions for the confiscation of illicit products under the Customs Act, 1969. These amendments include strict penalties to curb illegal dispensing, storage, and transportation of petroleum products.

The Petroleum Division has also implemented models for long-term demand and supply, pricing, and circular debt reporting to ensure transparency in the gas sector. These digital and legislative reforms underscore the government's commitment to modernising the petroleum sector, eliminating illicit activities, and aligning Pakistan’s regulatory framework with international best practices.