Islamabad, November 14, 2024 – The Oil and Gas Regulatory Authority (OGRA) has taken a significant step toward bolstering accountability in Pakistan’s oil sector by organizing a workshop focused on implementing an effective track and trace system.
The event was held in collaboration with the Federal Board of Revenue (FBR), the Oil Companies Advisory Council (OCAC), and the Oil Marketing Association of Pakistan (OMAP). It brought together leading digital solution providers to discuss potential technology solutions for improving transparency in the oil industry.
In his opening remarks, OGRA’s Chairman emphasized the vital role a robust track and trace system could play in tackling illegal trade, improving accountability, and safeguarding economic stability. “A comprehensive tracking system is essential to protect national revenue, prevent financial leakages, and support industry integrity, particularly during challenging economic times,” he stated.
The Director General of FBR (Reforms and Automation) addressed attendees, highlighting the need for a track and trace system in the oil sector similar to those in place for other industries. He noted that FBR and customs authorities have ramped up efforts to curb smuggling and illegal fuel sales by leveraging advanced technology. Recent enforcement actions have led to the closure of over 1,200 illegal fuel stations, signaling a zero-tolerance approach. The DG also outlined strict penalties for illegal operations, with fines up to Rs. 10 million and seizure of smuggled products.
The workshop focused on engaging Oil Marketing Companies (OMCs) to explore technologies such as Radio Frequency Identification (RFID) and Automated Tank Gauging Systems (ATGs) that could enable real-time monitoring of tank lorries and fuel stations. OGRA and FBR encouraged OMCs to collaborate in identifying appropriate solutions, setting achievable timelines, and finding cost-effective methods for industry-wide implementation. “In these difficult times, collective efforts are crucial to establish a system that effectively combats smuggling and illegal activities, aligning with both industry interests and national goals,” the DG urged.
The initiative reflects OGRA’s commitment to introducing digital solutions that enhance transparency, sustainability, and the resilience of Pakistan’s oil sector. By implementing advanced monitoring technology, OGRA and industry stakeholders aim to mitigate the risks associated with smuggling and financial losses, while also improving regulatory oversight and supporting economic recovery.
This workshop represents a proactive move by OGRA, working alongside FBR and industry bodies, to modernize Pakistan’s oil sector and create a sustainable, accountable framework for the future.
