Thursday, June 12, 2008

Oil & Gas Marketing – Budget Impact

Oil & Gas Marketing – Budget Impact


Reduction and exemption of duty on bi-products

Bitumen, JP4 & JP8 have been exempted from duty.


PDL and GDS targets for FY09 set

The target for Petroleum Development Levy (PDL) has been set at PKR14bn against PKR8.2bn lasy year while that for Gas Development Surcharge has been set at PKR17.375bn against PKR21.057bn last year.


Impact – Neutral to Positive

• We understand that while the Petroleum Development Levy collection target will decide local petrol prices in FY09, Gas Development Surcharge will have no implications for gas companies.

• The decision to cut down some taxes on bi-products such as bitumen, JP4 and JP8 will help increase the volumetric sale of such products.

FEDERAL BUDGET 2008-09

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