Petroleum Act, 1934

The Petroleum Act, 1934 is the main federal law regulating how petroleum and other highly flammable liquids are imported, transported, stored, produced, refined and blended in Pakistan. It was originally written to consolidate older colonial-era rules into one law and has been amended several times since, most recently in 2023 and 2025.

Section 2 sorts petroleum into classes based on how easily it catches fire (its "flashpoint") — Class A (very low flashpoint, like petrol), Class B, Class C, and "excluded petroleum" (flashpoint of 93°C or above, considered safe enough to fall largely outside the Act's licensing rules). Section 3 says nobody may import, transport or store petroleum except in line with rules the government makes under Section 4, and Class A petroleum in particular needs a licence. Section 4 lists the kind of rules the Federal Government can make — where petroleum can be imported, what containers and pipelines must look like, licence fees and application procedures, and (per a 2025 amendment) a mechanism for real-time digital tracking and monitoring of fuel at petrol stations. Section 5 similarly requires rules for anyone producing, refining or blending petroleum. Section 6 requires containers of Class A petroleum to carry a visible warning label such as "Petrol" or "Motor Spirit," with some exemptions for small sealed containers and vehicle fuel tanks.

Chapter II (Sections 14-22) sets out how petroleum is tested for its flashpoint, including standard test apparatus, certified testing officers and the right to demand a re-test. Chapter III (Sections 23-28) covers offences, confiscation of illegally held petroleum, court jurisdiction, powers of entry and search, and the reporting and investigation of accidents involving petroleum. Chapter IV lets the Federal Government extend the Act to other dangerous flammable substances (Section 30) and limit local authorities' powers over petroleum (Section 31).

This is an old law that has been amended multiple times (the extract shows footnotes like "Subs. by Act No. XLII of 2023" and "Subs. by Act No. XXVI of 2025"), and it references newer concepts like "oil marketing company" and "dealer" tied to the Pakistan Oil Rules, 2016. Because the underlying licensing conditions, fees and current flashpoint thresholds are set through subsidiary rules rather than fully spelled out in the extract, anyone relying on specific figures should check the current official rules and any later amendments.