ISLAMABAD/KARACHI: More than a year after the government uncovered a massive Rs135 billion scam involving illegal imports of Light Aliphatic Hydrocarbon Solvent (LAHS), a highly inflammable chemical used to adulterate petrol, the issue remains unresolved. The inter-ministerial committee formed to investigate the affair has now directed the Customs Department to auction 62 seized trucks and finalize the disposal of remaining consignments within three weeks.
The decision came during the second meeting of the Committee on Illegal Import of LAHS/White Spirit, held at the Ministry of Energy (Petroleum Division) under the convenorship of the Minister for Petroleum. The meeting was attended by representatives from the Federal Board of Revenue (FBR), Oil and Gas Regulatory Authority (OGRA), Department of Explosives (DoE), Ministries of Industries and Defence Production, and law enforcement agencies.
Officials informed the committee that while the ban on land-based imports of LAHS remains in force, hundreds of seized consignments continue to pile up at border points, a reminder of the scam first reported in August 2024, when authorities discovered over 800 tankers carrying dangerous petrol adulterant imported in violation of the Petroleum Act 1969 and Petroleum Rules 1937.
Back then, the Prime Minister’s Office had intervened to halt illegal shipments through the Taftan-NLC Dry Port, exposing how importers were marketing the solvent as petrol, allegedly with the complicity of customs officials and laboratory personnel.
At the latest meeting, Customs officials reported that 62 truckloads of the confiscated LAHS have cleared adjudication and are free of litigation, while 25 are still under court proceedings. The committee authorized Customs to conduct open auctions of the cleared consignments at a discount of 10–15% from the prevailing price of naphtha, and tasked the Department of Explosives with assisting in the early disposal of pending court cases.
The committee also directed that 17 trucks imported under valid licenses could be released only after verification of end-user details by the DoE. The Oil and Gas Regulatory Authority (OGRA), in coordination with the Ministry of Industries and Production, was asked to develop a track-and-trace mechanism to monitor the production, sale, and consumption of industrial solvents to prevent future misuse.
To bridge data gaps, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) will help compile industrial consumption data, while FBR and Customs will share import records from June 2025 onward. Refineries, including ENAR (under Strategic Plans Division), have been directed to provide monthly production and sales reports to the Petroleum Division.
The committee further took notice of the potential misuse of other solvents, including White Oil, Heptane, Toluene, Xylene, and Methanol, which could also be used for adulteration. OGRA has been tasked with analyzing their chemical composition and pricing to determine which substances require tighter regulation.
Officials said the Additional Secretary (Policy) of the Petroleum Division will draft a comprehensive framework for solvent regulation and industrial use, while the Secretary Petroleum will review all implementation reports and recommend further actions in the next session.
The persistence of the LAHS issue, once described as a “national-level petroleum scandal” highlights the bureaucratic hurdles and weak enforcement that have allowed the case to linger for over a year. The original inquiry in 2024 had found that more than 900 million litres of the solvent were imported over three years, causing losses worth Rs135 billion to the national exchequer through evasion and adulteration.
Despite the crackdown and bans, industry insiders admit that regulatory fragmentation and court cases have delayed final resolution. Officials say the new directives are meant to clear seized stockpiles and prevent future misuse, but the broader challenge of accountability for those behind the scam remains unresolved.
