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June 09, 2013/AlAhad
Sha'ban 01, 1434/Ravivara
Jyaistha 19, 1935, at 09:33:41
The Petroleum Products (Development Surcharge)
XXV OF 1961
1st JULY, 1961
An Ordinance to provide for the levy and collection of a development
surcharge on petroleum products and for matters connected therewith.
WHEREAS it is expedient to provide for the levy and collection of a
development 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 ail 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 called
the petroleum products (Development 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 in
the subject or context,---
(1) “Company” means a company specified in the Second Schedule, [and include a
person engaged in the manufacturing, refining or reclaiming of lubricating oil
from used lubricating oil]
[1-A) Depot includes the premises set apart for manufacturing, refining or
reclaiming of lubricating oil from used lubricating oil in any namer]
(2) “Development surcharge” means the surcharge payable under section 3;
[(3) “deferential margin” means the amount by which the fixed sale price exceeds
the aggregate of the prescribed price and the inland freight margin, if any;]
[(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, not exceeding the
amount shown in the Third Schedule, as the Central Government may, by
notification in the official Gazette, declare to be the fixed sale price;]
[(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
[(4-B) “installation” means such premises set apart for the storage of petroleum
products as the Central Government may, by notification in the official Gazette,
declare to be an installation for the purposes of this Ordinances;]
(5) “Petroleum Product” means any petroleum product specified in the First
(6) “Prescribed price” means 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
[(7) “refinery” means a refinery specified in the Fourth Schedule].
3. Levy of Development Surcharge
(1) Subject to the provisions of this
Ordinance, ever refinery and every company shall pay to the Central Government a
development surcharge equal to the differential margin in respect of petroleum
products produced or, as the case may be, purchased by it for resale except for
(2) The development surcharge in respect of the period commencing from the first
day of August, 1959, and ending on the day this Ordinance is promulgated shall
become payable immediately on such promulgation.
(3) Any amount due as development surcharge under subsection (1) or arrears
thereof under sub-section (2) and not paid within the time allowed by the
Central Government or any officer, authorized by it in that behalf shall be
recoverable as arrears of land revenue.
3-A Power to grant exemption from payment, authorise refund and procedure for
collection and refund of surcharge. (1) Subject to such conditions,
limitations or restrictions as it may think fit to impose, the Central
Government may, in such general cases as it may prescribe by rules or in
particular cases by special order, exempt a refinery or company from the payment
of the development surcharge in respect of all or any of the petroleum products
or authorise the refund in whole or in part of the development surcharge paid by
a refinery or company.
(2) Subject to any rules made under this Ordinance, the development surcharge
shall be collected,---
(a) in respect of imported petroleum products, in the same manner as an imported
duty payable under the [Custom Act, (IV of 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 Central Excises and Salt Act, 1944 (I of
1944), is collected.
(3) The provisions of the Customs Act, 1969 (IV of 1969), or as the case may be,
the provisions of the Central Excises and Salt Act, 1944 (I of 1944), shall, so
far as may be, apply to the levy, collection and refund of the development
4. Maximum sale price.
(1) Notwithstanding anything contained in any
other law, no company shall sell [ex-refinery, ex-installation, ex-ratial 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 [Price Control and Presentation of
profiteering and Hoarding Act, 1977 (XXIX of 1977] Essential Supplies Act, 1957,
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 development surcharge for purposes of income-tax. Notwithstanding
anything contained in any other law, the amount of the development surcharge
paid by a company under section 3 shall be an expenditure for which allowance is
to be made in computing profits or gains under [Section 23 the Income-tax
Ordinance 1979 XXXI of 1979.
6. Power to make rules
(1) The Central Government may, by notification in
the official Gazette, make rules for carrying out the purposes of this Ordinance
and any such rules may be retrospective from any date not earlier 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 [fixed sale price and] prescribed price;
[(aa) for the determination of the inland freight margin.
[(aaa) for the manner of payment and refund of, and exemption from the payment
of the development surcharge;]
(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
Central Government, necessary in order to give effect to the purposes of this
7. Power to amend Schedules.
The Central Government may, from time to
time, by notification in the official Gazette, make such amendments and
modifications in the Schedules as it thinks fit.
[8. Delegation of powers. - The Central 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 Central Government].
List of petroleum products
Nomenclature in common Nomenclature
in common use In Pakistan use in internationally by the Oil
industry and as S.No. used in platt’s Daily Reporting
[see section 2(6)]
1. Aviation Spirit 73 On u/l 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 Vaporizing Oil.
7. Superior Kerosene. Kerosene.
8. Inferior Kerosene. No. 2 Fuel
9. High Speed Diesel 48-52 Diesel Index
10. Light Diesel Oil (90% No.2 Fuel, 10%
Bunker “C” Fuel)
11. Furnace Oil. Bunker “C
12.Lubricating oil including Base Oils and Lubricating oil reclaimed from used
Lubricating oil MVI, HVI, LVI
[13. Asphalt Bitumen Asphalt/Cutback Asphlt.]
[14. Jute Batching Oil]
[15. Automotive Gas 100 Oct]
16. Omitted by the S.R.O. 166
(1) 1/71 dated 22nd May 1971.
7. Motor Gasoline 90 Octane R. Motor Gasoline 90R]
19.All types of Naphtha/Solvent
List of Companies
1. M/s. Pakistan State Oil Company Ltd,
2. M/s. Caltex Oil (Pakistan)
3. M/s. Pakistan Burmah Shell Ltd.
4. Attock Refinery Ltd.
5. Pakistan Peoples Product Corporation, Karachi
6. M/s. Jamia Industries Ltd. Karachi.
7. Omitted by the Federal Adaptation of Laws Order, 4 of 1975.
8. Omitted by the Federal Adaptation of Laws Order, 4 of 1975.
9. M/s. Pakistan Grease Manufacturing Company Ltd., Karachi
10. M/s. Technical Oil Manufacturing Company Ltd., Karachi.
11. M/s. Petroleum Industries of Pakistan Ltd., Baldhar Haripur Hazara.
12. M/s. Baluchistan Lubricants Blenders Ltd., Hab Chowki, Ditrict Lasbella.
13. M/s. Aremai Petroleum Ltd., Lahore
14. Omitted by the Federal Adaptation of Laws Order, 4 of 1975.
15. Omitted by the Federal Adaptation of Laws Order, 4 of 1975.
[16. M/s. Karachi Lubricant, Ibrahim State D-1/Block
7-B, Karachi Corporative Society, Lahore.
17. M/s. Ashrat Lubricant Company Ltd., Chack Jhemra Road near Ghatti Railway
See section 2(4)
[1. Aviation Gasoline 110/145 2.53
2. Aviation Gasoline 100/130 2.53
3. H.O.B.C. [2.92]
4. Octane [10.00]
5. Motor Gasoline [2.32]
6. Jp - 1 2.31
7. S. D. 1.43
8. D.O. 1.43
9. Kerosene Superior 1.43
10. Lubricating Oil including Base Oil and 15.00
Lubricating Oil reclaimed from used Lubricating Oil.
11. Furnace Oil [800.00]
Rs. Per litre
12. Base Oil [4500.00]
Rs. Per metric ton.
13. Asphalt (exclusive of the cost of drums). [1200.00]
Rs. Per litre
14. JP-4 4.80]
List of refineries
[See section 2(7)]
1. Attock Oil Refinery. Rawalpindi
2. Pakistan Refinery Ltd., Karachi
3. National Refinery Ltd., Karachi
4. Eastern Refinery Ltd., Chittagong,]