Iranian Oil Smuggling into Pakistan Dropped by 60% Amid Tanker Attacks

The volume of smuggled Iranian petroleum entering Pakistan has decreased by at least 60% over the past six weeks, according to people in the oil trade. This decline is attributed to tanker attacks in Balochistan that resulted in significant losses for those involved in the illicit business.

At least six oil tankers coming from Iran have been destroyed in the past 45 days, though this figure could not be independently confirmed. The reduction in smuggled fuel has been substantial, making it difficult to determine the exact scale of previous and current volumes.

The decrease comes after a period where smuggled Iranian fuel had spread beyond Balochistan and was available in Sindh up to Karachi, with many believing Punjab also benefited from the supply. The inflow increased following the US-Israeli attack on Iran on February 28, when crude prices climbed above $100 per barrel.

Pakistan did not face oil or gas rationing during this period, despite seeing petroleum reserves come under pressure. Additional ships arrived to help avert shortages seen in India, Bangladesh, and Sri Lanka, according to the oil sector account. The trade has persisted for years, with oil marketing companies pressing for action against fuel smuggling.