The Federal Investigation Agency (FIA) has registered a case against GO Petroleum and its officials for allegedly diverting over 32,000 metric tonnes of bonded (untaxed) petroleum products into the local market. This move reportedly caused billions of rupees in losses to the national exchequer.
According to the FIR filed by FIA’s Corporate Crime Circle in Karachi, the company and a bonded fuel terminal operator at Port Qasim conspired to sell imported fuel without paying customs duties, taxes, and petroleum levy. The fuel was transported from Port Qasim to Mehmoodkot in Muzaffargarh through the White Oil Pipeline and PARCO network while it was still officially under bond.
A physical inspection on June 22 revealed a major shortfall. Records showed over 39,000 metric tonnes should have been present, but only about 7,040 metric tonnes were found, a difference of roughly 32,081 metric tonnes. Investigators also found evidence of similar irregularities earlier at the Port Qasim terminal, including the sale of 4,744 metric tonnes of high-octane fuel without proper documentation.
Seven individuals, including GO Petroleum CEO Khalid Riaz and Terminal One CEO Fiaz Ahmed, along with two companies, have been named in the case. They face charges under the Customs Act, Pakistan Penal Code, and Prevention of Corruption Act. The FIA is also probing possible involvement of customs officials and OGRA staff.
GO Petroleum has stated it is cooperating with authorities and remains committed to compliance. The case highlights the government’s efforts to crack down on fuel smuggling and tax evasion in the petroleum sector, which continues to face challenges of irregularities and revenue losses.
