Karachi, November 6, 2024 – The Federal Board of Revenue (FBR) has announced a significant achievement in the collection of customs duties on petroleum, oil, and lubricants (POL) products during the fiscal year 2023-24.
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PM Imran reduces, freezes POL prices
ISLAMABAD: Prime Minister Imran Khan on Monday announced reduction in prices of petroleum products and electricity tariff and further announced to freeze the reduced rates till upcoming federal budget.
The Prime Minister provided the relief by slashing prices of petroleum and electricity to provide massive relief to the people.
In his address to the nation on Monday, he said prices of petrol and diesel will be reduced by ten rupees per litre and electricity by five rupees per unit.
The Prime Minister also announced to award internship to all jobless graduates worth 30,000 rupees per month. He said 26,000 scholarships, costing 38 billion rupees will be given to students.
He said his recent visits to China and Russia will have far reaching impact on country’s economy.
The Prime Minister said we are going to import two million tons of wheat and gas from Russia, while we have better understanding on the second phase of China-Pakistan Economic Corridor.
Imran Khan said he believes in an independent policy in the best interest of the people of Pakistan.
He urged the people to not vote for a party, whose leader is involved in corruption as such parties cannot pursue an independent foreign policy.
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Customs I&I Multan auctions POL products on Dec 7
ISLAMABAD: The Directorate of Customs Intelligence and Investigation, Multan has announced the auction of a huge quantity of confiscated POL (petroleum) products on December 07, 2021.
The directorate invited sealed quotations/bids along with 25 per cent earnest money in the form of pay order or bank demand in favor of collector of customs from the oil marketing companies (OMCs) to purchase the same on as is where is basis.
The directorate will auction about 188,509 liters of high-speed diesel and 70,000 liters of crude oil and hydrocarbon oil.
As per law 10 per cent withholding tax shall be paid by the successful bidder/offer of the accepted bid amount of the auctioned subject POL products.
Interested/eligible bidders or offerers (OMCs) may participate in auction by way of submission of sealed tender/offer, in the name of the director of customs.
The directorate said that the sealed tenders must be submitted up to 1:00PM on December 7, 2021. The tender shall be opened at 2:00PM on the same day in the presence of all participants.
The highest tender/offer shall be considered for processing of the case and submitted to the competent authority.
In case of acceptance of the offer, rest of the amount shall be paid by the successful bidder within a period of seven days. In case of rejection of the bid earnest money shall be refunded to the bidder.
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Prices of kerosene oil, LDO increased for next fortnight
ISLAMABAD: The government has increased the prices of kerosene oil and Light Diesel Oil (LDO) for next fortnight effective from August 16, 2021.
The prices of kerosene oil have been increased by Rs0.81 per liter, from Rs87.49 to Rs 88.30.
Likewise, the prices of Light Diesel Oil (LDO) have been increased by Rs1.10 per liter from Rs84.67 to Rs85.77.
However, the government kept prices of petrol and diesel unchanged with effective form August 16 for next fortnight.
According to press statement issued by the Finance Ministry, the sale of petrol would continue on Rs119.80 till August 31st.
Likewise, prices of High Speed Diesel (HSD) would remain unchanged at Rs116.53 per liter.
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FBR reduces sales tax rate on petrol to 10.77%
In a move aimed at providing relief to consumers, the Federal Board of Revenue (FBR) has announced a reduction in the sales tax rate on the supply of petrol. The new rate, effective immediately, is set at 10.77%, down from the previous rate of 16.40%.
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FBR drafts rules for warehousing, export of POL products
ISLAMABAD: The Federal Board of Revenue (FBR) has drafted rules for bonded warehousing and export POL Products.
The FBR issued SRO 872(I)/2021 on Friday and proposed amendments to Customs Rules, 2001. The FBR invited recommendations on the draft rules from stakeholders before finalizing the rules to make part of the law.
Following new rule 363A has been suggested regarding bonded warehousing and export of POL products:
(1) The owner may store any imported POL products in a warehouse and export the same in accordance with rules 363A to 363F.
(2) At the time of arrival of goods at a port, the owner shall file goods declaration through WeBOC system for in-bonding of the imported POL products submitting the documents as required under the Act.
(3) The securities in the shape of postdated cheques and indemnity bond furnished by the owner under section 86 of the Act, at the time of warehousing of POL products, shall continue to be in force notwithstanding the transfer of the goods to any other person or firm unless the warehoused POL products are exported by way of supply to conveyances as provisions and stores as provided in section 106 of the Customs Act, without payment of any duties, taxes or levies, as the case maybe.
Explanation / Note: Since the POL products, to be imported under this scheme, will be shipped or supplied without foreign exchange remittances from Pakistan, on account of cost of goods at the time of their imports, therefore, no Electronic Import Form (EIF) shall be required at the time of filing of GD for their in-bonding. Similarly, no EIF shall be required at the time of export. The owner of any POL products, warehoused in accordance with the foregoing provisions of this rule, may export such POL products as provisions and stores for conveyances proceeding to any foreign territory including by way of direct sale or sale through a third party.
Explanation / Note: ‘direct sale’ — means that owner makes a direct sale to the owner or charterer of the conveyance and deliver the POL products to such conveyance. ‘Sale through a third party’ — means that the owner will:
(i) issue sales invoice to a foreign entity other than the owner or charterer of the conveyance; and
(ii) deliver POL products to a conveyance on the instructions of such foreign entity.
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FBR reduces sales tax rates on petroleum products
ISLAMABAD: Federal Board of Revenue (FBR) has reduced the rates of sales tax on domestic supply of petroleum products.
The sales tax rates have been reduced in order to maintain the retail prices for end consumers applicable from the first fortnight of May 2021.
The FBR issued SRO 551(I)/2021 dated May 09, 2021 to amend SRO 57(I)/2016 dated January 29, 2016.
Following are the revised sales tax rates on petroleum products from May 01, 2021:
Motor spirit: 17 percent ad valorem
High speed diesel oil: 17 percent ad valorem
Kerosene: 15.44 percent ad valorem
Light diesel oil: 7.56 percent ad valorem
On April 30, 2021, a press statement was issued by the finance division:
“In line with the vision of the Prime Minister to provide relief to the consumers in the holy month of Ramazan, the Government has decided not to increase the prices of the petroleum products. The implementation of this proposal requires an adjustment in the rates of petroleum levy on all petroleum products and a reduction in sales tax as well in case of kerosene oil and light diesel oil.
It is pertinent to mention that the Government was not charging any Petroleum Levy (PL) on Kerosene and light diesel oil.
The cumulative revenue impact of the decision will be Rs. 4.8 billion.
The prices of petroleum products w.e.f 1st May 2021 are as follows: MS Petrol Rs.108.56/liter High Speed Diesel Rs. 110.76/liter Kerosene oil Rs. 80.00/liter Light Diesel Oil Rs. 77.65/liter
A uniform rate of sales tax at 17 percent was announced for all petroleum products through SRO 700(I)/2019 effective from July 01, 2019. However, this notification has been now amended.
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Sales of POL products surge by 44pc in March
KARACHI: The sales of petroleum products have climbed up by 44 percent year on year (YoY) in March 2021 due to low base of March 2020 as the government last year enforced lockdown that resulted in slowdown in sales volume.
Analysts at Arif Habib Limited said that total petroleum and lubricant sales clocked-in at 1.49 million tons in March 2021, depicting a gigantic growth of 44 percent YoY (ex- furnace oil growth of 32 percent YoY and 4 percent MoM) and 6 percent MoM due to extra working days compared to February and low base of March 2020 given the incumbent government enforced a lockdown last year resulting in a slowdown in sales volumes.
The growth in sales volumes is primarily attributable to: i) Economic growth driving retail fuel sales, ii) Surge in trade activity (exports and imports) and better agricultural yields resulting in higher sales of HSD, iii) double digit growth in automobile offtake, iv) preference to private transport over public transport to reduce chances of contracting Covid-19, and v) strict surveillance on borders and various parts of country in order to control supply of illegal or dumped fuel from Iran.
During 9MFY21, sales of total petroleum products increased by 15 percent YoY to 14.15 million tons against 12.27 million tons in 9MFY20.
Dissection of data revealed that major contribution to growth came from HSD and FO with offtake undergoing a jump to 5.38 million tons and 2.30 million tons, up by 17 percent and 43 percent YoY against 4.60 million tons and 1.61 million tons in SPLY.
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Petrol, HSD prices kept unchanged for next fortnight
ISLAMABAD: The government has decided to keep the prices of petrol and high speed diesel (HSD) unchanged for next fortnight, a statement said on Monday.
It said that the government has been absorbing the upward price fluctuation in international market in order to provide maximum relief to the end consumers.
Despite very limited fiscal space, the government has decided that the prices of MS (Petrol) and High Speed Diesel (HSD) will remain the same.
However, as no Petroleum Levy (PL) is being charged on SKO and LDO, the prices of Kerosene (SKO) and Light Diesel Oil (LDO) have been marginally increased by Rs.3.42/liter and Rs.2.19/liter respectively due to significant rise in the international prices of Petroleum Products.
The following new prices would be effective from March 16, 2021 for the 2nd fortnight of the current month:
MS (Petrol) is unchanged at Rs111.90
High Speed Diesel (HSD) is unchanged at Rs116.08
Kerosene (SKO) has been increased from Rs80.19 to Rs83.61
Light Diesel Oil (LDO) has been increased from Rs79.23 to Rs81.42
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Prices of petroleum products kept unchanged for next 15 days
ISLAMABAD: The government on Sunday decided to keep prices of petroleum products unchanged during first fortnight of March 2021.
This is the second fortnight in a row when the government decided to keep the POL prices unchanged.
The prices as of February 01, 2021 remain effective for the first fortnight of March 2021.
The government on January 31, 2021 announced raise in petroleum prices. Following prices were increased and effective from February 01, 2021:
The price of petrol has been increased by Rs2.70 per liter to Rs111.90 from previous rate of Rs109.20.
The rate of high speed diesel has been enhanced by Rs2.88 per liter to Rs116.07 from Rs113.19.
The price of kerosene oil has been increased by Rs3.54 per liter to Rs80.19 from Rs76.65.
The rate of light diesel oil has been increased by Rs3.00 per liter to Rs79.23 from Rs76.23.