THE PETROLEUM PRODUCTS (DEVELOPMENT SURCHARGE)
RULES, 1967
S.R.O. 39(R) /67, dated the 29th March, 1967 (Gaz, of Pak. Stan. Ext., 1997, pp 107-110) — In exercise of the powers conferred by Section 6 of the Petroleum Products (Development Surcharge) Ordinance, 1961, and in supersession of the Petroleum Products (Development Surcharge) Rules, 1961, the Central Government is pleased to make the following rules, namely:–
1. Short title – (1) These Rules may be called the Petroleum Products (Development Surcharge) Rules, 1967.
(2) They shall come into force from the 1st day of April, 1967.
2. Definitions – In these Rules, unless there is anything repugnant in the subject or context,
[(Subs. by S.R.O.819(1)/79, dated 24th September 1979) (1) “Director” means the Director Oil Operations or any officer or authority authorized by the Federal Government to exercise the powers and perform the functions of the Director under these rules],
(2) “Gallon” means “Imperial Gallon”,
(3) “Ordinance” means the Petroleum Products (Development Surcharge) Ordinance, 1961,
(4) “Schedule” means a Schedule appended to these Rules,
(5) “Ton” means “Long Ton of 2240 Ibs.
3. Prescribed price for oil distribution companies – In relation to oil companies other than refineries the prescribed price of a petroleum product specified in the Schedule shall be determined by the Director, after taking into account (Subs. by S.R.O. 187(1)/83, dated 16th May, 1983) [such of the following as may be applicable] the following namely:-
(a) Cost and freight of the products on the basis of authorized imports, (Subs. by S.R.O. 187(1)/83, dated 16th May, 1983) [or in the case of Petroleum Products Produced in the country, F.O.B. Cost].
[(Subs. by S.R.O. 487(1)/83, dated 16th May, 1983) Explanation I – To convert the dollar value to rupees, the applicable exchange rate as notified by the State Bank of Pakistan shall be adopted].
[(Subs. by S.R.O. 583 (1)/77, dated 1st July, 1977) Explanation on II- in order to convert the quantitative units to tonnes or liters, the following conversion factors will be used, namely:-
Products Litres 60 of per Litres 85 of per
tonne or tonne or
equivalent in equivalent in
centigrade centigrade
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Aviation Gasoline 115/145 Octane 1423.92 1448.92
Aviation Gasoline 100/130 Octane 1398.52 1420.42
Aviation Gasoline 73 Octane 1410.55 1432.68
Aviation Turbine Fuel 1273.65 1290.54
Motor Gasoline 1403.70 1427.27
High Speed Diesel Oil 1203.62 1215.82
Kerosene Superior 1267.54 1284.36
Kerosene Inferior 1206.89 1222.12
Vaporizing Oil 1225.15 1241.41
Light Diesel Oil 1172.24
Furnace Oil 1047.45 1085.98
Automotive Gasoline (HOBC) 1311.50 1331.07
(b) Marine Insurance.— Marine Insurance (which, during the continuance of a state of war or emergency declared by the Central Government, shall include war risk insurance) shall be at the actual rates payable for each petroleum product.
(c) Ocean Losses.— Ocean Losses shall be valued at the current C&F value of the relative products and calculated as an incidence (Subs by S.R.O. 583 (1)/77, dated 1st July, 1977) [per litre or per tonne] but not exceeding the percentage on C&F given in the table below:-
Products Percentage on
C&F
Motor Spirit … … … 0.33
Kerosene superior … … 0.25
Kerosene Inferior … … 0.25
Aviation Gasoline 100)
Aviation Gasoline108)
Aviation Gasoline 115) … … 0.54
Aviation Gasoline clear 73 )
Aviation Turbine Fuel … … 0.25
High Speed Diesel Oil … … … 0.31
Power Kerosene/Vaporizing Oil … … 0.35
Furnace Oil … … … 0.11
Light Diesel Oil … … … 0.44
(Added by S.R.O. 73(R)67, dated the 30th May, 1967, [(Figure added by
see Gaz,.of Pak., 1967, Entry. 297) S.R.O. 136(R)67
dated the 6th July
1967, See. Gaz. of
Pak., 1967 entry. P. 560
Automotive Gasoline 100 Octane] 0.54]
(d) Statutory charges.— Statutory charges being all duties, taxes, users’ charges and any other charges levied by Government, Corporations, Municipalities, port authorities and other statutory Bodies in Pakistan in respect of each petroleum products, provided that taxes, levies or other charges on neat earnings and profits of an oil distribution company shall not be included.
(e) Distribution margin.— A charge to be determined by the Director, having regard to the circumstances and experience of one or more companies, to cover depreciation and interest on the fixed assets (other than assets used for the transportation of petroleum products) and other expenses and remuneration of the companies.
(f) Expenses incurred by a company on the inland transportation of petroleum products, (Ins. by S.R.O. 138(1)68, dated the 28th June, 1969, see Gaz. of Pak., 1969, Ext. p. 511) [Through pipeline other-wise] subject to the provisions of Rule 6.
[( Ins by S.R.O. 26(1)/71, dated 3rd July, 1971) (g) Dealer,s Commission. Dealers Commission on Motor Gasoline, Automotive Gasoline 100 Octane (High Octane Blending Component) and High Speed Diesel Oil at the rates approved by the Central Government.]
4. Variation in the elements of prescribed price.— Variation in the elements of prescribed price shall be reflected in the prescribed price from the first of the month following the date of each variation except for variations in respect of statutory charges, which shall have immediate effect.
5. Excess of depreciation and interest. — The Central Government if it is satisfied on the basis of the report of the auditors of an oil company/and the documents showing the original costs of the fixed assets of that company that such fixed assets had been acquired at comparatively higher costs, my allow that company an increase in the distribution margin to cover higher depreciation value and interest charges.
6. Inland Transportation Expenses. — (1) Expenses on inland transport incurred by any company in any calendar month on the distribution of aviation gasoline 100 Octane (automotive), motor gasoline, superior and inferior kerosene, high speed oil state oil shall [by oil road or pipeline] be adjusted from months to month against the protion of the fixed sale price declared by the Director to represent inland freight equalization margin, (Ins by S.R.O. No. 834(1)81, dated 28th July, 1981) [and the Director shall from time to time fix the freight charge for transportation of the petroleum products through pipelines].
(2) Expenses on inland transport may include depreciation on company-owned vehicles and equipment at the rates applied in the assessment of income tax and interest at 6% on the written down value thereof at the end of the year except where rebate on such vehicles allowed by the Railways is retained by a company:
Provided that the following shall not be included in computing inland transportation expenses:-
(i) Expenses for the transportation of petroleum products from any place of storage not recognized by the Director to be an installation, and within main port city limits except in the case of deliveries by railway wagons or to companies motor gasoline/high speed diesel oil pumps;
(ii) Demurrage;
(iii) Expenses incurred on transportation by road where railway wagon (S.R.O. 416(1)/85, dated 24 April, 1985) [and pipeline having capacity for the transfer of the products] were available and could be utilized, except for dispatches by road from river side depots in East Pakistan to up-country storage depots.
[(Subs. by S.R.O. No.834(1)/81, dated 28th July, 1981) (iv) Expenses incurred on transportation of petroleum products by pipelines in excess of the rates approved by the Federal Government;
(v) Expenses incurred on transportation of petroleum lost in transit.]
(3) Each company shall maintain adequate records or receipts and expenses relating to freight which shall be audited by the auditors and shall submit to the Central Government (Added by S.R.O.217(1)/85, dated 25th February, 1985) [half yearly] a certificate from its auditors that the information contained in the records is correct and true and that the amount due to the Government has been correctly calculated in accordance with the rules and has been deposited into Government account. In addition each company shall render a monthly return showing quantities of products sold, freight charges recovered, freight expenses incurred (separately by rail and road) and the amounts payable to Government.
[(Sub-rules (4) and (5) added and shall be deemed to have been so added w.e.f 1st July,1968 by S.R.O. 1 (R)/68, dated the 1st January, 1968, see Gaz. of Pak, 1968 Extry, pp. 1-2) (4) Notwithstanding anything contained in sub-rule (3), the Central Government may, whenever it so thinks fit, appoint auditors to audit the accounts relating to inland freight equalization margin and all the expenses of such audit shall be borne by the company.
(5) The Director may prescribe separate inland freight equalization margin in respect of each province or different areas of a province, and separate accounts shall be maintained by every company in respect of each province or such area, and no adjustment shall be made between the receipts and expenses of the different provinces or areas relating to freight equalization].
7. Prescribed price for refineries .— The prescribed price of the petroleum products refined by refineries in Pakistan shall be determined by the Director having regard to the common elements included in the prescribed price of the imported petroleum products and the special circumstances of each refinery and such adjustment as the Central Government may from time to time, directs:–
Provided that in no case the prescribed price of petroleum products refined by refineries in Pakistan shall exceed the prescribed price of the corresponding imported products.
[(Subs. and shall be deemed to have been so subs. for rule 8 w.e.f. 1st January 1968, by S.R.O. 178(1)/69, dated the 20th August, 1969, see Gaz. Of Pak. 1969 Extry P. 671 which had been subs. by S.R.O. 1(R)/68, dated the 1st January, 1968) 8. Payment of Development Surcharge .— The development surcharge shall be paid and deposited or be refunded in like manner and with or by like authorities as any duty of excise or the duty of customs is paid and deposited or is refunded].
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SCHEDULE
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Nomenclature in common use in Nomenclature in common use
Pakistan internationally by the Oil Industry
and as used in Plant’s Daily
Reporting Service.
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Aviation Gasoline 115/145 Avgas Grade 115/145
Aviation Gasoline 100/130 0N Avgas Grade 100/130
Aviation Gasoline 73 ON u/1 Avgas Grade 73 clear
Aviation Turbine Fuel No. 1. Tribune Fuel 1 (-560F)
Motor Gasoline 79 Octane
Superior Kerosene Kerosene
Inferior Kerosene. No. 2 Fuel
Light Diesel Oil. (90% No.2 Fuel 10% Bunker ‘C’ Fuel)
High Speed Diesel. 48/52 Diesel Index
Furnace Oil. Bunker ‘C’ Fuel
Vaporizing Oil. Tractor Vaporising Oil
[(Entry added by S.R.O.79 (R)/67, dated the
30th May, 1967, see Gaz. Of Pak,1967 Ext. P.298)
Automotive Gasoline 100 Octane. Automotive Gasoline 100 Oct.
[(Added by S.R.O. No. 443(1)/83, dated 7.5.1983
Lubricating Oils including base oils and [MV1, HV1, LV1]
lubricating oils reclaimed from used lubricating
oils].
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