Page 1 of 9 THE PETROLEUM PRODUCTS PETROLEUM LEVY AND CLIMATE SUPPORT LEVY ORDINANCE, 1961 CONTENTS 1. Short title, extent and commencement 2. Definitions 3. 3A. Power to grant exemption from payment, authorise refund and procedure for collection and refund of Petroleum Levy and Climate Support Levy 4. Maximum sale price 5. Allowance to be made for Petroleum Levy and Climate Support Levy for purposes of income tax 6. Power to make rules 7. Powers to amend Schedules 8. Delegation of powers 9. Validation THE FIRST SCHEDULE THE SECOND SCHEDULE THE FOURTH SCHEDULE THE FIFTH SCHEDULE [Omitted] Page 2 of 9 THE PETROLEUM PRODUCTS PETROLEUM LEVY AND CLIMATE SUPPORT LEVY ORDINANCE, 1961 ORDINANCE No. XXV OF 1961 [1st July, 1961] An Ordinance to provide for the levy and collection of a 1[Petroleum Levy]2[and Climate Support Levy] on petroleum products and for matters connected therewith. WHEREAS it is expedient to provide for the levy and collection of a 1[Petroleum Levy] 2[and Climate Support Levy] 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[(Petroleum Levy)] 2[and Climate Support Levy] 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 3[and includes a person engaged in the manufacturing, refining or reclaiming of lubricating oil from used lubricating oil]; 1Subs. by the Finance Act, 2010(Act No. XVI of 2010), s. 2 (w.e.f. 01-07-10). 2Ins. by the Finance Act, 2025 (Act No. XIX of 2025), s.3. 3Added by Ordinance No. XVIII of 1984, s. 2. Page 3 of 9 1[(1A) “d epot” includes the premises set apart for manufactu ring, refining or reclaiming lubricating oil from used lubricating oil in any manner;] (2) 2[* * * * * * *] (3) 2[* * * * * * *] 3[(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.] 4[(4A) “inland freight margin” means the amount as determined in accordance with the rules made under section 6 to represent the inland transpor tation expenses of pe troleum products from companies’ installation to their retail outlets or depots ;] 4[(4B) “installation” means such premises set apart for the storage of petroleum products as the 5[Federal Government] may, by notif ication in the official Gazette , declare to be an instal lation for the purposes of this Ordinances ;] 2[(4Ba) 6[* * * * * * *]] 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 ;] (4D) 8[* * * * * * *] (5) “Petroleum Product” means any petroleum product specified in the First Schedule 8[ and includes Compressed Natural Gas and Liquefied Petroleum Gas]; 9[*] (6) “Prescribed price” means the 10[ex-refinery price or as the case may be, the ex-installation, ex-retail outlet or ex-depot sale price] as determined in accordance with the rules made under section 6 11[; and] 12[(7) “Refinery” means a refinery specified in the Fourth Schedule.] 1Ins. by Ordinance No. XVIII of 1984, s. 2. 2Omitted and ins. by Finance Ordinance, 2001 (Ordinance No. XXV of 2001), s. 3. (w.e.f 1st July of 2001) 3Subs. by the Finance Ordinance,2002 (Ordinance No. XXVII of 2002), s. 3. 4Ins. and shall be deemed to have been so ins. on the first day of July 1966, by Ordinance No. XXII of 1971, s. 2. 5Subs. by Federal Adaptation of Laws Order, 1975 (P.O.No. 4 of 1975), Art. 2 and Table. 6Omitted by the Finance Act, 2009 (Act No. I of 2009), s. 7 (w.e.f 01-07-09). 7Ins. by the Finance Act, 2008 (Act No. I of 2008), s. 2 (w.e.f 01-07-08). 8Omitted by the Finance Act, 2010 (Act No. XVI of 2010), s. 2 (w.e.f 01-07-10). 9Omitted and shall be deemed always to have been so omitted Ordinance No. XXII of 1971, s. 2 10Subs. and shall be deemed always to have been so subs., ibid. 11Subs. ibid. 12Added and shall be deemed always to have been so added, ibid. Page 4 of 9 1[3.__2[(1) Every company, refinery and licensee shall pay to the Federal Government, a petroleum levy 3[and climate support levy] on petroleum products at such 3[rates as may respectively] be notified by the Federal Government in the official Gazette, from time to time.] (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 an d payable under sub -section (1) and not paid within the time allowed by the Federal Gov ernment, or any officer authoriz ed by it in that behalf, shall be recoverable as an arrear of land revenue.] 3[(4) A Climate Support Levy shall be levied at the rate of two rupees and fifty paisa (Rs. 2.5) per liter on Motor Spirit and High Speed Diesel for Financial Year 2025-26, which shall be enhanced to five rupees per liter for Financial Year 2026 -27. The Climate Support Levy on Furnace O il shall be levied at the r ate of two rupees and fifty paisa (Rs. 2.5) per liter (Rs. 2,665/MT) for Financial Year 2025 -26, which shall be enhanced to five rupees per liter for Financial Year 2026 -27 in addition to the Petroleum Levy at the rate notified by the Federal Government from time to time.] 4[3A.__Power to grant exemption from payment, authorise refund and procedure for collection and refund of 2[Petroleum Levy] 3[and Climate Support Levy] . (1) Subjec t to such conditions, limitations or restrictions as it may think fit to impose, the 6[Federal Government] may, in such general cases as it may prescribe by rules or in particular cases by special order, exempt a refinery 2[, licensee] or company from the payment of the 5[Petroleum Levy] 3[and Climate Support Levy] in respect of all or any of the petroleum products or authorise the refund in whole or in part of the 5[Petroleum Levy] 3[and Climate Support Levy] paid by a refinery 2[, licensee] or company. (2) Subject to any rules made under this Ordinance, the 5[Petroleum Levy] 3[and Climate Support Levy] shall be collected,__ (a) in respect of imported petroleum products, i n the same manner as an import duty payable under the 7[Custom Act, 1969 (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 5[Federal Excise Act, 2005] 5[***] is collected. 7[(3) The provisions of the Customs Act, 1969 (IV of 1969), or, as the case may be, the provisions of the 5[Federal Excise Act, 2005] 5[***] shall, so far as may be, apply to the levy, collection and refund of the 5[Petroleum Levy] 3[and Climate Support Levy].] _______________________________________________________________________________ 1Subs. by Finance Ordinance, 2001 (Ordinance No. XXV of 2001), s. 3. 2Subs. and ins. by Act No. XXII of 2011, ss. 2-3. 3Ins., subs. and added by Finance Act, 2025 (Act No. XIX of 2025), s. 3. 4Ins. & shall be deemed to have been so ins., on the first day of January 1968 by Ordinance No. XXII of 1971, s. 4. 5Subs. and omitted by the Finance Act, 2010 (Act No. XVI of 2010), s. 2 (w. e. f 01-07-2010). 6Subs. by the Federal Adaptation of Laws Order, 1975 (P. O No. 4 of 1975), Art. 2 and Table. 7Subs. by Federal Law (Revision and Declaration) Ordinance No. XXVII of 1981, s. 3 and Sch. II. Page 5 of 9 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 Prevention 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 shal l 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] 4[and Climate Support Levy] for purposes of income-tax.__ Notwithstanding anything contained in any other law, the amount of the 3[Petroleum Levy] 4[and Climate Support Levy] paid by a compan y 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)] 3[***]. 6. Power to make rules.─ (1) The 5[Federal Government] may, by notification in the official Gazette, make rules 6 for carrying out the purposes of this Ordinance and any such rules may be retrospective from any date not earlier 7[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 8[fixed sale price and] prescribed price; 9[(aa) for the determination of the inland freight margin;] 10[(aaa) for the manne r of payment and refund of, and exemption from the payment of, the 3[Petroleum Levy]4[and Climate Support Levy] ;] 1Subs. and shall be deemed always to have been so subs. by Ordinance No. XXII of 1971, s. 5. 2Subs. by the Federal Laws Revision and Declaration Ordinance No. XXVII of 1981, s. 3 and Sch., II. 3Subs. and omitted by the Finance Act, 2010 (Act No. XVI of 2010), s. 2 (w. e. f. 01-07-2010). 4Ins. by the Finance Act, 2025 (Act No. XIX of 2025), s.3. 5Subs. by the Federal Adaptation of Laws Order, 1975 (P. O No. 1 of 1975), Art. and Table. 6For the Petroleum Products (Development Surcharge) Rules, 1961 see Gaz. of P.1961, Ext pp. 1069-1074. 7Sic. Should read “than”. 8Ins. and shall be deemed always to have been so ins. by Ordinance No. XXII of 1971, s. 6 9Ins. and shall be deemed to have been so ins. on the first day of July, 1966, ibid. 10Ins. and shall be deemed to have been so ins. on the first day of January, 1968, ibid. Page 6 of 9 (b) for any other matter for which there is no provision or n o 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[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[****]].] 4[* * * * * * *] 4[9. Validation. ─Notwithstanding anything contained in any law, rules or judgment of a Court, the petroleum development le vy levied and collected from a company during the period from the 1st day of March, 2010 , 5[to the coming into force of the Petroleum Products (Petrole um Levy) (Amendment), Act, 2011 (XXII of 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 thereunder.] THE FIRST SCHEDULE List of Petroleum Products [See section 2 (6)] S. No. Nomenclature in common use in Pakistan. Nomenclature in common use internationally by the Oi l 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). 1Subs. by Federal Adaptation of Laws Order, 1975 (P. O No. 4 of 1975), Art. 2 and Table. 2Subs. by the Finance Act, 2025(Act No. XIX of 2025), s. 3. 3Added by Ordinance No. XXII of 1971, s. 7. 4Omitted & Added. by the Finance Act, 2010 (Act No. XVI of 2010), s. 2 (w.e.f. 01-07-2010) 5Subs. by Act No. XXII of 2011, s. 4 Page 7 of 9 1[11. * * * *] 2[12. 3[Lubricating Oil including Base Oil and Lubricating Oil reclaimed from used Lubricating Oil.] MVI, HVI, LVI. 4[13. * * * * * * 5[14. Jute Batching Oil] 6[15. Automotive Gas 100 OCT] 7[16. * * * * 8[17. Motor Gasoline 90 Octane R. Motor Gasoline 90 R.] 9[18. JP __ 4…………………………… 10[19. All types of NAPHTHA / 11[ * ] 12[20. Methyl Tertiary Butyl Ether (MTBE)] 13[21. Premium Motor Gasoline 87 RON] 14[22. JP __ 8 JP __ 8 ] 15[23. E-10 Gasoline Ethanol E-10 Gasoline] 16[24. Denatured Denatured Fuel Ethonol for blending with Gasoline] 17[25. Regasified Liquefied Natural Gas (RLNG) or any volumes supp lied in lieu thereof through a swap arrangement. RLNG] 18[26 Furnace Oil Bunker ‘C’.] 1 1Omittted by S.R.O.450 (1)/2000, dt 01-07-2000. 2Item 12 and 13 were added by S.R.O. 143 ®/66, dt. 16th August, 1966, see Gaz of P., 1966.Ext., p.812. 3Subs. by Ordinance No. XVIII of 1984, s. 3. 4Omitted by S.R.O 499(1)/96, dt, 13-06-96. 5Added by S.R.O No. 6(R) /67, dated the 18th January, 1967, see Gaz. of p. 1967, Ext., p.25. 6Added by S.R.O. No. 78(R)/67, dated the 29th May, 1967, see Gaz. of P., 1967, Ext.p. 297. 7S. No. 16 omitted by S.R.O. No. 166(1)71, dated the 22nd May, 1971, see Gaz of P., 1971, Ext.p. 494, which was previously added by S.R.O No. 139(R)/67,dt, the 17th July, 1967, see Gaz. of p. 1967, Ext.p.784. 8 Added by S.R.O No. 214(1)/69, dt, the 1st October, 1969 see, Gaz, of P., 1967, Ext., p.859. 9Added by S.R.O No. 385(1)/72, dt, the 13th June, 1972, see. Gaz., of P., 1972, Ext., Pt.II,p. 346. 10Added by S.R.O No. 1610(1)/73, dt, the 20th Nov, 1973, see. Gaz. of. P.1973, Ext., Pt. II, p.2347. 11Omitted by S.R.O. 450(1)/2000, dt, 01-07-2000. 12Added by S.R.O 51(1)/94, dt, 18-01-94. 13Added by S.R.O 865(1)/99, dt. 22-07-99. 14Added by S.R.O 772(1)/06, dt, 27-07-06. 15 Added by S.R.O.731(1)/2009,dt 15-08-2009. 16 Added by S.R.O. 759(1)/2015, dt 28-08-2009. 17 Added by S.R.O. 405(1)/2015, dt 07-05-2015. 18Added by the Finance Act, 2025 (Act No. XIX of 2025), s.3. Page 8 of 9 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.] 6[13 Sui Northern Gas Pipelines Limited 14 Sui Southern Gas Company Limited] THE THIRD SCEHDULE 7[* * * * * * *] THE FOURTH SCEHDULE List of Refineries [See section 2 (7)] 8[1. Attock Oil Refinery Ltd.,. Rawalpindi. 2. Pakistan Refinery Ltd., Karachi. 3. National Refinery Ltd., Karachi.] 1Subs. by S.R.O 525 (1)/98,dt, 05-06-98 2Added by S.R.O 476 (1)/02,dt, 26-07-02 3Added by S.R.O 431 (1)/2004,dated, 04-06-2004 4Added by S.R.O 690 (1)/06, dt, 30-06-2006. 5Added by S.R.O 846(1)/06, dt, 17-08-06. 6Added by S.R.O. 405(1)/2015, dt 07-05-2015. 7Omitted by Finance Ordinance, 2002 (Ordinance No. XXVII of 2002), s. 3. 8Subs. by S.R.O 89(1)/79, dt, 23rd 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. Page 9 of 9 1[4. Dhodak Refinery] 2[5. Pak Arab Refinery Ltd. Muzzaffargarh.] 3[6. Bosicar Pakistan Ltd.] THE FIFTH SCEHDULE 4[* * * * * * *] _______ RGN Date: 31-07-2025 1Added by S.R.O 905(1)/94, dt, 14-9-94. 2Added by S.R.O 637(1)/2000,dt, 09-09-2000 . 3Added by S.R.O 477(1)/2002, dt. 26-07-2002. 4Omitted by the Finance Act, 2025 (Act No. XIX of 2025), s.3.