Karachi, May 24, 2012 (PPI-OT): The government has decided to abolish federal excise duty (FED) on different kinds of raw lubricant oil packs in the budget FY13.
According to Alfalah Securities Limited, the FED would be totally abolished on Base Lube Oil, lubricating oil manufactured from reclaimed oil or sludge or sediment, lubricating oil in bulk, lubricating oil manufactured from sludge and lubricating oil manufactured from sediment. Currently, FED of 10% of retail price is applicable on the lubricating oil, Rs 7.15 per liter on Base Lube oil and Rs 2.0 per liter is applied to lubricating oil manufactured from reclaimed oils or sludge or sediment. With the abolition of FED on lube base oil, the price of lubricants is likely to ease off and likely to result in increased sales. National Refinery being the only lube refinery is likely to reap some benefit arising from this decision while it will also be favourable for the Oil and Gas Marketing companies dealing in lubricants like Shell, PSO and APL.