Around six million litres of smuggled fuel are entering Pakistan every day, depriving the national exchequer of up to Rs280 billion annually, the Oil Companies Advisory Council (OCAC) warned on Tuesday.

In a statement, the body representing Pakistan’s downstream oil industry said the growing influx of illegal petroleum products is damaging the formal energy sector, eroding government tax revenues, and placing licensed oil companies at a severe competitive disadvantage.

OCAC said the illicit fuel trade has become a major challenge for the country’s energy market, with every litre of smuggled oil displacing legally imported and taxed products.

The council urged the government to launch an immediate and comprehensive crackdown on fuel smuggling, saying stronger enforcement is needed to dismantle illegal supply networks and restore a level playing field for compliant businesses.

It warned that failure to act decisively would allow the black market to expand further, increasing revenue losses and undermining Pakistan’s long-term energy security.