• Says goods be made public if substance is not smuggled Iranian petrol • Questions risks of keeping fuel-laden tankers impounded for nearly three years ISLAMABAD: The Federal Constitutional Court ( FCC) on Wednesday ordered fresh testing of a seized chemical within two weeks by a laboratory approved by the Oil and Gas Regulatory Authority ( Ogra) to determine whether the substance was light aliphatic hydrocarbon ( LAH) or, as alleged by Customs authorities, smuggled Iranian petrol. The chemical was seized by the Directorate of Customs Intellige­nce and Investigation, Lahore, in 2023. The development underscores the growing complexity of the situation.

Context and History

The backdrop to this story helps explain both the urgency and the broader implications.

A three-member FCC bench, headed by Justice Syed Hasan Azhar Rizvi and comprising Justice Rozi Khan Barrech and Justice Syed Arshad Hussain Shah, also indicated that if the fresh test confirmed the substance to be LAH, as claimed by the respondent, the seized goods should be released immediately.

Senior counsel Wasim Sajjad and Idrees Ashraf represented the Directorate of Customs Intelligence and Investigation before the FCC, which is hearing an appeal against a Dec 12, 2023 judgement by the Lahore High Court.

Observers have also noted that the LHC had held that the goods had already been assessed and that the petitioner department had “ absolutely no authority to reassess the same ”.

During the hearing, the court expressed concern over the continued impounding of oil tankers carrying flammable substances for nearly three years.

Reactions and Responses

A growing chorus of voices has emerged to analyze what this means.

“ Who will be responsible if someone ’ s cigarette ignites a fire? ” Justice Rizvi asked, observing that keeping tankers loaded with volatile chemicals parked for such a prolonged period posed substantial risks.

Of particular significance is the fact that justice Rizvi also noted that the tanker drivers may have been rendered unemployed because of the lengthy seizure of the vehicles by Customs authorities.

According to those with knowledge of the situation, sajjad argued, still, that the seized substance was petrol allegedly smuggled from Iran in oil tankers.

It has also emerged that justice Barrech observed that blending chemicals with hydrocarbons to produce petrol had become a lucrative business.

Policy Implications

The downstream effects of this situation are being assessed by officials and experts alike.

Earlier, the Directorate of Cus­toms Intelligence and Inves­tiga­tion received information that several illegal storage, dumping and mixing sites — commonly known as Daba stations — had been established near Machikay in Sheikhupura.

It has also emerged that according to the information, the operators were supplying diesel and petrol after mixing various chemicals and solvents while using import documents or invoices issued by oil depots of oil-marketing companies ( OMCs) as cover.

Adding further dimension to the story, consequently, a joint team comprising Customs intelligence officials and the district administration visited the site on Oct 9, 2023.

At the same time, the owners, who belonged to Gujranwala district, failed to produce the required documents, including an OMC dealership ce­­rtificate and licence under the Petroleum Act 1934, Petroleum Rules 1937, Ogra Ordinance 2002, Pakistan Petroleum ( Refin­ing, Blending and Marketing) Rules 1971, Pakistan Oil ( Refi­ning, Blending, Transportation, Storage and Marketing) Rules 2016, and other relevant laws.

The Road Ahead

This story will continue to develop. Observers, policymakers, and citizens will all be watching what happens next in a situation that has already proven to be significant in multiple respects.