KARACHI: The Pakistan Petroleum Dealers Association (PPDA) has called on the government to launch an immediate crackdown on the alleged misuse of solvent oil in petroleum products, warning that the illegal practice is harming consumers, distorting markets and causing substantial revenue losses.
In a letter to Petroleum Minister Ali Pervaiz Malik, the association said the issue was discussed during the first meeting of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Central Standing Committee on Petroleum Products and Dealers two weeks ago.
The PPDA said that certain elements were allegedly blending solvent oil with petrol (MS) and high-speed diesel (HSD) to earn unlawful profits, as solvent oil is significantly cheaper and subject to a different tax regime.
According to the association, the practice has resulted in engine damage to vehicles, erosion of consumer confidence, and financial as well as reputational losses for legitimate petroleum dealers. It further warned that the illegal blending contributes to product adulteration, tax evasion and violations of petroleum regulations, while also leading to significant tax revenue losses for the government.
The association urged authorities to investigate the sources of solvent oil, including production by local refineries and imported supplies, and recommended scrutiny of sales records, distribution channels, import data, customs documentation and end-user details.
It proposed that relevant data be collected from refineries, oil marketing companies, Pakistan Customs and regulatory bodies to ensure transparency and effective monitoring. The PPDA also suggested that verified production and sales data of solvent oil be shared with the association to help identify suspicious market activity and irregular supply patterns, and to enable the timely reporting of violations to the authorities.
Among its key recommendations, the association called for immediate audits of solvent oil production and imports, mandatory documentation of buyers and end users, strict monitoring of transportation and storage, surprise inspections and laboratory testing, as well as heavy penalties against individuals and entities involved in adulteration networks.
PPDA Chairman Abdul Sami Khan said the misuse of solvent oil posed a serious threat to the petroleum industry, consumers and national revenue, stressing the need for coordinated enforcement at refinery, import and distribution levels.
The association said that a copy of the letter had also been forwarded to the chairperson of the Oil and Gas Regulatory Authority (Ogra), urging regulatory intervention.The association assured the government of its full cooperation in identifying and eliminating the illegal practice.Solvent oil is legally produced and traded for specific industrial purposes, including use in the oil paint business and other approved applications.
