The government has intensified its crackdown on an alleged Rs. 135 billion petrol adulteration racket involving the import of Light Aliphatic Hydrocarbon Solvent (LAHS), a highly flammable petroleum-related substance suspected of being mixed with petrol and sold through the domestic fuel supply chain.
According to Customs Intelligence findings cited in reports, nearly 900 million litres of LAHS were imported into Pakistan in less than three years. Investigators suspect that a significant portion of the solvent may have been diverted from legitimate industrial use for petrol adulteration.
The alleged scheme could have caused losses of around Rs. 135 billion, including duties and taxes.
LAHS has legitimate industrial applications, but authorities have raised concerns over its classification, handling and possible misuse because of its petroleum characteristics and low flash point.
Officials have argued that the product falls under the category of dangerous petroleum products and should therefore be subject to stricter licensing and regulatory controls. Customs valuation rules recognize LAHS under HS Code 2710.1250.
The investigation has focused on consignments entering Pakistan through the Taftan-NLC Dry Port in Quetta. Authorities reportedly noticed a sharp increase in solvent imports, raising questions over whether declared industrial demand could justify the scale of shipments.
A government committee subsequently noted that the surge in imports, along with a significant price difference compared with petrol, meant that the use of LAHS as a petrol adulterant could not be ruled out.
Authorities reportedly examined 36 importers and found 26 questionable or non-genuine addresses. Investigators are now looking into how the companies obtained tax registrations and whether supporting documents, including lease agreements and utility bills, were properly verified.
The investigation also covers alleged misdeclaration of HS codes, the use of industrial-trading categories, and the possible involvement of front persons and clearing agents.
The crackdown intensified after the Prime Minister’s Office intervened on July 29 following reports from Customs Intelligence. Authorities stopped the clearance of hundreds of tankers while reviewing import licences and related documentation.
Reports indicate that 807 tankers, including 160 Iranian transit tankers, were held at the NLC Dry Port in Quetta.
The issue has also attracted parliamentary attention. A Senate committee discussed hundreds of LAHS consignments and questioned whether the material should formally be classified as a petroleum product.
The matter was referred to the Ministry of Commerce, while lawmakers called for greater oversight of the import and regulatory process.
Beyond the potential revenue impact, authorities have raised concerns about the quality of petrol allegedly containing LAHS. Investigators said the solvent does not meet the required Research Octane Number (RON) specifications for petrol.
Earlier testing cited by Customs authorities reportedly found fuel containing solvent that failed to meet Oil and Gas Regulatory Authority (OGRA) specifications, raising concerns about potential engine damage and higher maintenance costs for consumers.
The government has also faced challenges over the handling of detained or confiscated LAHS. In 2025, authorities considered offering confiscated solvent to refineries for processing, with officials noting that testing individual tankers could be expensive.
More recently, Pakistan Customs listed overstay consignments of LAHS and white spirit at Taftan and the NLC Dry Port Quetta for auction, highlighting the continuing administrative challenge of disposing of detained cargo.
Trade records also show continued LAHS imports from Iran and other countries under HS Code 2710.1250, including tanker shipments recorded during 2025 and 2026.
The ongoing investigation is expected to focus on the classification of LAHS, verification of its declared end use and monitoring of future imports to prevent its potential diversion into the domestic fuel supply chain.
