Oil Pool Account Compensation Excluded from Dutiable Value of Superior Kerosene Oil Under Former Section 4.

The circular addresses the determination of the assessable value of petroleum products under the former Section 4, specifically concerning the inclusion of compensation from the Oil Pool Account. It clarifies that the administered prices of products like Superior Kerosene Oil (SKO) are set by the Ministry of Petroleum and Natural Gas and include a Product Price Adjustment (PPA) element. The Ministry of Law opined that contributions from the Oil Pool Account should not be added to the assessable value of SKO. The Board accepted this advice, indicating that the compensation received by oil companies from the Oil Pool Account should not affect the dutiable value of SKO.

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