The Petroleum Products 1[Surcharge] Ordinance, 1961 (Ordinance No. XXV of 1961)

Updated: Wednesday February 24, 2016/AlArbia'a Jamada El Oula 16, 1437/Budhavara Phalguna 05, 1937, at 05:04:46 AM

The Petroleum Products ¹[Surcharge] Ordinance, 1961

ORDINANCE No. XXV OF 1961

[1st July 1961]

An Ordinance to provide for the levy and collection of a ¹[Surcharge] on petroleum products and for matters connected therewith.

WHEREAS it is expedient to provide for the levy and collection of a ¹[Surcharge] on petroleum products and for matters connected therewith;

NOW, THEREFORE, in pursuance of the Proclamation of the seventh day of October, 1958, and in exercise of all powers enabling him in that behalf, the President is pleased to make and promulgate the following Ordinance:^__

1. Short title extent and commencement.^__(1) This Ordinance may be called the Petroleum Products ¹[Surcharge] Ordinance, 1961.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once, and shall be deemed to have taken effect on the first day of August, 1959.

2. Definitions. In this Ordinance, unless there is anything repugnant the subject or context,^__

(1)”Company” means a company specified in the Second Schedule ²[and includes a person engaged in the manufacturing, refining or reclaiming of lubricating oil from used lubricating oil];

¹Subs. by Act I of 2009. s. 7 (w.e.f. 01-07-09)

²Added by Petroleum products (Development Surcharge) (Amdt.) Ordinance. 1984 (18 of 1984),s. 2.

[(1-A) Depot includes the premises set apart for manufacturing, refining or reclaiming of lubricating oil from used lubricating oil in any manner:]

²[(4) “fixed sale price” means such ex-refinery sale price or, as the case may be, ex-installation, ex-retail outlet or ex-depot sale price as^__

(a) the Federal Government, by notification in the official Gazette: or

(b) a company specified in the Second Schedule and authorised by the Federal Government, in respect of any petroleum product specified in the First Schedule, through electronic and press media, may declare to be the fixed sale price.]

³[(4-A) “inland freight margin” means the amount as determined in accordance with the rules made under section 6 to represent the inland transpiration expenses of petroleum products from companies, installation to their retail outlets or depots;]

³[(4-B) “installation” means such premises set apart for the storage of petroleum products as the ⁴[Federal Government] may, by notification in the official Gazette, declare to be an installation for the purposes of this Ordinances;]

⁵[(4Ba) ⁶[“Petroleum Levy”] means any levy payable under section 3;.]

⁷(4C) “licensee” means the licensee defined in the Compressed Natural Gas (Production and Marketing) Rules, 1992, or the Liquefied Petroleum Gas (Production and Distribution) Rules, 2001, as the case may be, and as specified by rules made under section 6;’]

(5) “Petroleum Product” means any petroleum product specified in the First Schedule; ⁸* ⁷[ and includes Compressed Natural Gas and Liquefied Petroleum Gas]

(6) “Prescribed price” means the ⁹[ex-refinery price or, as the case may be, the ex-installation, ex-retail out-let or ex-depot sale price] as determined in accordance with the rules made under section 6 [; and]¹⁰

¹¹[(7) “refinery” means a refinery specified in the Fourth Schedule].

¹Ins. by the Petroleum (Development Surcharge) (Amdt.) Ordinance, 1984 (18 of 1984), s. 2.

²Ins. by Ord. 25 of 2001, s-3.

³Ins. and shall be deemed to have been so ins. on the first day of July 1966, by. Ord. 22 of 1971, s.2.

⁴Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government”.

⁵Omitted and Added by Act 1 of 09, s-7 (w.e.f 01-07-09.

⁶Subs. by Act XVI of 10, s (w.e.f 01-07-10)

⁷Ins. by Act 1 of 08, s.2 (w.e.f 01-07-08).

⁸The word “and” omitted and shall be deemed always to have been so omitted Ord. 22 of 1971 s-2

⁹Subs. and shall be deemed always to have been so subs., ibid., for “ex-Installation Price”.

¹⁰Subs. ibid., for “full stop”.

¹¹Added and shall be deemed always to have been so added, ibid.

[(1) Every company, refinery and licensee shall pay to the Federal Government, a petroleum levy on petroleum products at such rate as may be notified by the Federal Government in the official Gazette, from time to time.]

²[(2) Nothing in sub-section (1) shall apply to a petroleum product produced by a refinery or, as the case may be, purchased by a company, for export.

(3) Any amount due and payable under subsection (1) and not paid within the time allowed by the Federal Government, or any officer authorised by it in that behalf, shall be recoverable as an arrear of land revenue.]

³[3.A.^__ Powers to grant exemption from payment, authorise refund and procedure for collection and refund of ⁴[Petroleum Levy]. (1) Subject to such conditions, limitations or restrictions as it may think fit to impose, the ⁵[Federal Government] may, in such general cases as it may prescribe by rules or in particular cases by special order, exempt a refinery licensee or company from the payment of the ⁴[Petroleum Levy] in respect of all or any of the petroleum products or authorise the refund in whole or in part of the ⁴[Petroleum Levy] paid by a refinery licensee or company.

(2) Subject to any rules made under this Ordinance, the [Petroleum Levy] shall be collected,^__

(a) in respect of imported petroleum products, in the same manner as an imported duty payable under the ⁶[Custom Act, 1969)] is collected; and

(b) in respect of petroleum products produced in Pakistan, in the same manner as a duty of excise leviable under the [Federal Excises Act, 2005] is collected.

⁷[(3) The provisions of the Customs Act, 1969 (IV of 1969), or, as the case may be, the provisions of the [Federal Excises Act, 2005] shall, so far as may be, apply to the levy, collection and refund of the ⁴[Petroleum Levy].

¹Subs. Ins. by Act XXII of 2011, ss. 2-3

²Subs. by Ordinance. 25 of 2001 s.3.

³Ins & shall be deemed to have been so ins., on the first day of January 1968. by Ord. 22 of 1971, s.4.

⁴Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government”.

⁵Subs, by the Federal Law (Revision and Declaration) Ord. 1981 (27 of 1981), s. 3 and Sch II, for “Tarif Act. 1934 (32 of 1934).

⁶Subs. ibid., for sub-section (3).

4. Maximum sale price. (1) Notwithstanding anything contained in any other law, no company shall sell ¹[ex-refinery, ex-installation, ex-retail outlet or ex-depot] any petroleum product at a price higher than the fixed sale price.

(2) A contravention of sub-section (1) shall be deemed to be a contravention of an .order made under section 3 of the ²[Price Control and Presentation of profiteering and Hoarding Act, 1977 (XXIX of 1977)], and all the provisions of that Act shall have effect accordingly.

(3) Nothing in this Ordinance shall be deemed to have or ever to have had the effect of retrospectively creating any offence or of retrospectively enhancing the punishment for any offence provided in any law for the time being in force.

5. Allowance to be made for ³[Petroleum Levy] for purposes of income-tax. Notwithstanding anything contained in any other law, the amount of the ³[Petroleum Levy] paid by a company under section 3 shall be an expenditure for which allowance is to be made in computing profits or gains under ³[Income Tax Ordinance, 2001 (XLIX of 2001)].

6. Power to make rules (1) The ⁴[Federal Government] may, by notification in the official Gazette, make rules⁵ for carrying out the purposes of this Ordinance and any such rules may be retrospective from any date not earlier ⁶[than] the first day of August, 1959.

(2) In particular and without prejudice to the generality of the foregoing power such rules may provide.

(a) for the determination of the ⁷[fixed sale price and] prescribed price;

⁸[(aa) for the determination of the inland freight margin;]

⁹[(aaa) for the manner of payment and refund of, and exemption from the payment of the ³[Petroleum Levy].

¹Subs. and shall be deemed always to have been so subs. by the Petroleum Products (Development Surcharge) (Amdt.) Ord. 1971, (22 of 1971) s-5 for “ex-Installation”.

²Subs. by the Federal Laws Revision and Declaration Ordinance, 1981 (27 of 1981) s.3 and Sch., II for “Essential Supplies Act, 1957) (3 of 1957)”.

³Subs. by Act, XVI of 2010, S.2 (w.e.f. 01-02-2010).

⁴Subs. by F.A.O. 1975 Art, and Table for “Central Government”

⁵For the Petroleum Products (Development Surcharge) Rules, 1961 see Gaz. of P.1961, Ext pp. 1069-1074.

⁶Sic. Should read “than”.

⁷Ins. and shall be deemed always to have been so ins. by the Petroleum Products Development Surcharge Ordinance, (22 of 1971), s-6.

⁸Cl. (aa) ins. and shall be deemed to have been so ins. on the first day of July, 1966.

⁹Cl. (aaa) ins. and shall be deemed to have been so ins. on the first day of January, 1968, ibid.

(b) for any other matter for which there is no provision or no sufficient provision in this Ordinance and for which provision is, in the opinion of the ¹[Federal Government], necessary in order to give effect to the purposes of this Ordinance.

7. Power to amend Schedules. ²[Except for the Fifth Schedule, the ¹[Federal Government] may, from time to time, by notification in the official Gazette, make such amendments and modifications in the Schedules as it thinks fit.

³[8. Delegation of powers.^__ The ¹[Federal Government] may, by notification in the official Gazette, direct that all or any of its powers under this Ordinance or the rules made thereunder shall, in such circumstances and under such conditions, if any, as may be specified in the direction, be exercised also by an officer or authority subordinate to the ¹[Federal Government.].

⁴[9. Validation.^__Notwithstanding anything contained in any law, rules or judgment of a Court, the petroleum development levy levied and collected from a company during the period from 1^st day of March, 2010 ⁵[(to the coming into force of the Petroleum Products (Petroleum Levy) (Amendment), Act, 2011)], shall be deemed to have been validly and lawfully levied and collected and shall not be refunded. So much of such levy as has not been paid, collected or realized during the said period shall be recoverable in accordance with the provisions of this Ordinance and the rules made therunder.]

___________

¹Subs. by F.A.O., 1975 Art. 2 and Table for “Central Government”.

²Subs. by Act 1 of 09 s. 7 (w.e.f. 01-07-2009)

³Added by the Petroleum Products (Development Syrcharge) (Amdt.) Ord. 1971 (22 of 1971), s. 7.

⁴Subs. by Act. XVI of 2010, s.2 (w.e.f. 01-07-2010)

⁵Subs. by Act XXII of 2011, s.4

THE FIRST SCEHDULE

List of Petroleum Products

¹²[See section 2 (6)]

S. No.	Nomenclature in common use in Pakistan.	Nomenclature in common use internationally by the Oil Industry and as used in Platt's Daily Reporting Service.
1.	Aviation Spirit 73 On u/I.	Avgas Grade 73 clear.
2.	Aviation Spirit 100/130 ON.	Avgas Grade 100/130.
3.	Aviation Spirit 115/145 ON.	Avgas Grade 115/145.
4.	Aviation Turbine Fuel.	Turbine Fuel 1 (-56F).
5.	Motor Spirit.	79 Octane.
6.	Vaporising Oil.	Tractor Vaporising Oil.
7.	Superior Kerosine.	Kerosine.
8.	Inferior Kerosine.	No. 2 Fuel.
9.	High Speed Diesel.	48/52 Diesel Index.
10.	Light Diesel Oil.	(90 % No. 2 Fuel, 10 % Bunker ‘C' Fuel).
¹[11.	²[Lubricating Oil including Base Oil and Lubricating Oil reclaimed from used Lubricating Oil.]	MVI, HVI, LVI.
³[12.	Jute Batching Oil]
⁴[13.	Automotive Gas 100 OCT]
⁵[14.	* * *
⁶[15.	Motor Gasoline 90 Octane R.	Motor Gasoline 90 R.]
⁷[16.	JP ^__4……………………………
⁸[17.	All types of NAPHTHA /
⁹[18.	Methyl Tertiary Butyl Ether (MTBE)]
¹⁰[19.	Premium Motor Gasoline 87 RON]
¹¹[20.	JP ^__8	JP ^__ 8 ]

¹Item 13 and 13 were added by S.R.O. 143 ®/66. 16^thAugust. 1966. see Gaz of P..1966.Ext., p.812.

²Subs. by the Petroleum Products (Development Surcharge) (Amdt.) Ord. 1984 (18 of 1984) s. 3 for entry 12, which was previously amended by various S.R.O.s, from time to time.

³Omitted by S.R.O 477(1)/96, dt, 13-06-96.

⁴Added by S.R.O No. 6(R) /67, dated the 18^th January, 1967, see Gaz. of p. 1967, Ext., p.25.

⁵Added by S.R.O. No. 78(R)/67, dated the 29^th May, 1967, see Gaz. of P., 1967, Ext.p. 297.

⁶S. No. 16 omitted by S.R.O. No. 166(1)71, dated the 22^nd May, 1971, see Gaz of P., 1971, Ext.p. 494, which was previously added by S.R.O No. 139(R)/67,dt, the 17^th July, 1967, see Gaz. of p. 1967, Ext.p.784.

⁷ Added by S.R.O No. 214(1)/69, dt, the 1^st October, 1969 see, Gaz, of P., 1967, Ext., p.859.

⁸Added by S.R.O No. 385(1)/72, dt, the 13^th June, 1972, see. Gaz., of P., 1972, Ext., Pt.II,p. 346.

⁹ Added by S.R.O No. 89(1)/79, dt, the 23^rd Jan, 1977, see. Gaz. 1973, Ext., Pt. II, p.2347.

¹⁰Added by S.R.O 51(1)/94, dt, 18-01-94.

¹¹Added by S.R.O 865(1)/99, dt. 22-07-99

¹²Omitted by SRO 450 (1)/2000, dt 01-07-2000.

THE SECOND SCEHDULE

List of Companies

¹[1. M/s. Pakistan State Oil Company Ltd.

2. M/s. Caltex Oil (Pakistan) Ltd.

3. M/s. Shell (Pakistan) Ltd.

4. M/s/ Attock Refinery Ltd.

5. M/s. Pakistan Oil-fields Limited, Rawalpindi.

6. M/s. Attock Petroleum Ltd. Islamabad.]

²[7. M/s. Pakistan Arab Refinery Company Ltd. (PARCO).

8. M/s. TOTAL-PARCO Pakistan Ltd.]

9. M/s. Bosiear Pakistan Ltd.]

³[10. M/s. Admore Gas (Pvt.) Ltd.]

⁴[11. M/s. Hascombe Storage (Pvt.) Ltd.]

⁵[12. M/s. Askar Oil Services (Pvt.) Ltd.]

¹Added by S.R.O 772(1)/06, dt, 27-07-06

²Subs. by S.R.O 525(1)/98,dt, 05-06-98

³Added by S.R.O 47(1)/02,dt, 26-07-02

⁴Added by S.R.O 431(1)/2004,dated, 04-06-2004

⁵Added by S.R.O 846(1)/06, dt, 17-08-06.

* * * * *

THE FOURTH SCEHDULE

List of Refineries

[See section 2 (7)]

¹[1. Attock Oil Refinery Ltd.,. Rawalpindi.
2. Pakistan Refinery Ltd., Karachi.
3. National Refinery Ltd., Karachi.]
²[4. Dhodak Refinery]
³[5. Pak Arab Refinery Ltd. Muzzaffargarh.]
⁴[6. Bosicar Pakistan Ltd.]

⁵[THE FIFTH SCEHDULE

Rates of Petroleum Levy

[See section 2 (I)]

S. No. Petroleum Products Petroleum Levy Rate (Rupees

per Litre)

1. 2 3

1. High Speed Diesel Oil (HSDO) 8

2. Motor Gasoline 87 ROM 10

3. SKO 6

4. Light Diesel Oil (LDO) 3

5. HOBC 14

6. F^_____10 Gasoline 9].

7. Liquefied Petroleum Gas 11,486”

*Third Schedule omiotted by Ord. 27 of 2002, s.3.

¹Subs. by S.R.O 89(1)/79, dt, 23^rd Jan 1979, see Gaz., of P., 1979, Pt-II, p-244, for the entries under the heading “List of refineries” which were previously amended by various S.R..O,s from time to time.

²Added by S.R.O 905(1)/94, dt, 14-9-94

³Added by S.R.O 637(1)/2000,dt, 09-09-2000

⁴Added by S.R.O 477(1)/2002, dt. 26-07-2002

⁵Added by Act XVI of 2010, s. 2 (w.e.f 01-07-2010).

⁶Ins. by Act XXII of 2011, s.5