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Is Pakistan legalising Iranian petrol?

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QUETTA – Balochistan Chief Minister Mir Abdul Quddus Bizenjo has recently made a decision to legalize the sale of Iranian petrol in Quetta and its surrounding areas.

This move comes as a response to the understanding that selling Iranian petrol provides income for numerous families. It is important to note that Iranian petrol is currently being smuggled into Pakistan, which makes its sale illegal.

Upon learning about the ban, the CM immediately ordered the Inspector General of Police to halt the crackdown operation, and emphasized that prohibiting the sale of Iranian petrol would deprive many households of their source of income. However, the CM also specified that the sale of petrol should be restricted to open spaces and kept away from heavily populated residential areas.

This decision has received widespread appreciation from the province’s political and social circles, as it has saved many livelihoods. Mir Ziaullah Langau, the Minister for Home and Tribal Affairs in Balochistan, expressed his support for the CM’s decision, stating that it is in the best interest of the local population.

Last month, Pakistani businessmen reported an increase in the smuggling of Iranian fuel, with dealers estimating that 35% of the country’s fuel supply comes from illegal sources in Iran.

The Pakistan Petroleum Dealers Association (PPDA) has observed that smuggling has become a nationwide issue, with Balochistan serving as a major gateway. In April, the government issued orders to authorities to crack down on Iranian smuggling.

An official letter revealed that the illegal fuel products have caused a 40% decline in legitimate fuel sales. S&P Global Commodity Insights estimates that Iranian petrol is priced Rs. 53/liter lower than the retail price in Pakistan, which is a significant factor driving its high demand.

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