Iranian oil smuggling drops 60pc, claim sources

Iranian oil smuggling has decreased by at least 60 percent, according to sources in the oil sector. This decline is attributed to the destruction of six oil tankers by terrorists within a 45-day period, although the exact number remains unknown. The influx of Iranian petroleum products began following the US-Israeli war on Tehran, which pushed crude oil prices above $100 per barrel.

Since the attack on Iran on February 28, the Strait of Hormuz, a crucial energy transit chokepoint, has been closed, affecting global oil and natural gas supplies. Despite this, Pakistan has managed to avoid oil and gas rationing, with reserves of petroleum products lasting for 25 days. The country has seen more ships entering its ports during the war, ensuring a steady supply of smuggled petroleum products in Balochistan, Sindh, Karachi, and even Punjab.

Although it is challenging to determine the exact proportions of previous and current influxes, smuggling has significantly decreased. Pakistan spent a record $16.86 billion on petroleum product imports in FY26, accounting for 22 percent of the country's total import bill. Despite higher prices, the share of petroleum products in the import bill remained within average levels.

The illegal trade with Iran is estimated to be worth over $2 billion annually, with a wide range of products available in Karachi. Authorities deliberately ignored the smuggling of oil products from Iran due to the war and to prevent a potential shortage of oil supplies. The government has passed the increase in oil prices on to consumers without causing a shortage situation.