Regulatory duty on crude oil import increased to minimise revenue shortfall

E-Paper | March 18, 2026

ISLAMABAD: The government increased on Thursday regulatory duty on import of crude oil and its major products with immediate effect to minimise shortfall in revenue collection faced by the Federal Board of Revenue.

The decision coincided with a move to keep the prices of petroleum prices unchanged for May with adjustments in tax rates.

At a meeting of the Economic Coordination Committee (ECC) of the cabinet, the FBR had sought an increase in regulatory duty on crude oil, furnace oil, petrol and high speed diesel (HSD).

Also read: Asian imports of Iranian crude oil rise 20pc in 2014

The ECC allowed an increase of 2 to 8 per cent from the current 6pc in regulatory duty on crude oil, petrol and furnace oil by making amendments in the customs schedule.

It also allowed a 2.5pc hike in regulatory duty on HSD to 10pc from 7.5pc. The increase will take effect on June 1.

The decision will have an additional impact of Rs2 billion in June because duties on oil imports have an effect of about a month.

“The step is aimed to recoup some of the revenue losses due to persistent fall in petroleum products during the current financial year,” said the finance ministry.

Oil prices kept unchanged

Separately, the government decided to keep the prices of all petroleum products unchanged for May, despite Rs1 and Rs1.06 per litre reduction in petrol and diesel rates proposed by the Oil and Gas Regulatory Authority.

Finance minister Ishaq Dar said the government had decided to maintain the prices. After the adjustments in sales tax and petroleum levy, the prices would remain unchanged for the next month, he said.

Mr Dar said that because of change in prices of petroleum products in the international market, Ogra had recommended an increase in the prices of high octane by Rs9.43, kerosene by Rs2.11 and light diesel oil by Rs3.38 per litre.

Ogra had also recommended a decrease in the prices of petrol by Re1 to Rs73.29 and HSD by Rs1.06 to Rs82.55 per litre.

But the prime minister decided to keep the prices of all petroleum products unchanged.

Published in Dawn, May 1st, 2015

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Pakistan

Khaleeq Kiani is an Islamabad-based reporter for Dawn, specializing in political economy, governance, business, finance, macroeconomics and energy. He can be found on X at @khaleeqkiani.

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CYRUS

May 01, 2015 09:55am

The minimumization of revenue shortfalls is ongoing.

Recommend 0

May 01, 2015 02:33pm

The government should REDUCE its expenses and live within its means. The term "Revenue shortfall" is deceiving. The government needs to reduce its size by eliminating its unnecessary departments and ministries. SECONDLY, the government needs to stop its interference in the economy such as control of oil and food prices etc. Please allow the market forces to determine price of all commodities. Job of the government is to prevent cartels to prevent consumers and implement effective economic policies to encourage private sector investments and trade.

Recommend 0

M Rafique

May 01, 2015 02:38pm

Another mini budget. Consequent result increase in power terrif by IPPs, be ready common Pakistanies

Recommend 0

MASK

May 01, 2015 04:03pm

Instead of encouraging companies to do business, the government is just creating problems. Again its the never ending deficit leading to such a change in the policy. Can someone explain the literate meaning of deficit to the government. Looks as if the government is including its private and personal expenses in the targets to yield a deficit!

Recommend 0

zafar

May 02, 2015 09:46am

@AW Spot on AW. Where does it say that the government will collect X taxes on petroleum. These taxes are a percentage of the price and should be taken for whatever the government collects. Their is no effort made to broaden the tax net, and the consumption taxes in the form of Sales taxes keep increasing on everything under the sun. While income does not get taxed as the undocumented part of the economy keeps growing. So the poor masses who have no choice keep paying for the government's inefficiencies, extravagance and corruption.

Recommend 0

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