Pakistan’s oil industry is in turmoil over a large tax evasion scandal as thousands of metric tons of imported petrol have reportedly disappeared from a customs bonded storage causing a big loss to the national exchequer.

Official papers have revealed that a private petroleum company, in a clandestine operation, allegedly lifted petrol worth Rs2.38 billion from a customs bonded warehouse causing an estimated loss of Rs1.25 billion to the national exchequer in the shape of unpaid duties, taxes and levies.

The suspected tax evasion was discovered during the inspection of the corporation’s imported petroleum shipments. The discrepancy was reportedly discovered during a physical inspection of goods at the customs bonded facility of Bin Qasim Port.

The documents state the corporation has imported petrol in three consignments totalling 18,048 metric tons. During physical verification of stock, the bonded warehouse had 9,699 metric tons of petroleum but the company’s stock was short by 8,348 metric tons.

Private companies are doing research. The documents also reveal that PEPCO has been ordered to produce records in the probe.

This is not the first time a petroleum business is embroiled in a multi-billion-rupee tax evasion case. In another example, the Federal Board of Revenue (FBR) recovered approximately Rs5 billion from a petroleum business.

 China announced on Friday it was adding 14 European entities to an export control list in retaliation for the European Union penalizing 14 Chinese enterprises as part of its latest round of sanctions against Russia.

Chinese companies will not be allowed to export dual-use items, which can be used for both civilian and military purposes, to the 14 European organizations, China’s Commerce Ministry said in a statement.

Additionally, foreign companies are barred from providing to the 14 entities dual-use items made in China.

The European companies affected include Czech vehicle manufacturer Tatra Trucks, Italian electric motor maker Lafert SpA, German manufacturer Sindlhauser Materials GmbH and French drone manufacturer Cavok UAS.

A Chinese Commerce Ministry spokesperson said the measures were taken in retaliation for the E.U. on Thursday adding 14 mainland Chinese and Hong Kong enterprises to its latest list of sanctions against Russia over its war in Ukraine.

The measures are intended “to safeguard national security and interests, and to fulfill international obligations such as non-proliferation, in response to the E.U.’s egregious actions,” the spokesperson said.

The E.U. on Thursday adopted its 21st package of sanctions against Russia targeting banks, cryptocurrency companies and military equipment manufacturers among other categories. The sanctions included entities from other countries such as China, India and Turkey, believed to provide Russia with dual-use goods and technology.

Petroleum Division said that the pricing of petrol and high-speed diesel will not be adjusted till July 27.

Prices of petrol and diesel will not change over the weekend and the existing rates will continue, the Petroleum Division said in an official notification.

“The notification stated that the existing prices of petrol, high-speed diesel and other petroleum products will remain intact till July 27 (Monday) and the consumers will be able to purchase fuel at the existing rates during this period.

The government has also not announced any hike or cut in the price of petroleum products, officials said.

The present pricing will remain in force until the next price review, when a new decision will be taken.

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