News Guides Comparisons Specs & Price

Oil Companies Are Selling Substandard Fuel as High-Octane for Profits: Report

Some of the oil marketing companies (OMCs) in Pakistan have been selling research octane number (RON)-95 as high-octane blended component (HOBC) RON-97 fuel to trick customers and earn more profits.

The government controls and announces the price of RON-92, which is a standardized import fuel. An official stated that it was linked to the petroleum levy and sales tax that were slashed to nearly zero after the government announced that fuel prices would stay the same until the new budget.

The pricing of RON-95 and RON-97 have been deregulated and it is up to OMCs to set their own rates. RON-97 is liable to Rs. 30 fuel levy and a 17.5% GST, while RON-95 is levied similar to RON-92.

A prominent OMC that imported RON-97 reported that a rival was importing RON-95 and reselling it as RON-97 to evade taxes. After failing to draw the attention of the government, the accusing OMC also began importing RON-95 and retailing it as RON-97.

More OMCs Deceiving Consumers

RON-97 or higher is labeled ‘HOBC’ in most countries but RON-95 was sold as HOBC in Pakistan under different brand names.

As RON-97 is deregulated for HOBC, this implies that OMCs may sell the fuel at their desired rates. The government has set the petroleum development levy at Rs. 30 per liter and the full sales tax rate at 17 percent on the grounds that the owners of luxury SUVs or sports cars, who can acquire vehicles costing millions of rupees, must pay more for premium fuel.

This has created an irregularity in the case of HOBC RON-95 which was sold as RON-97 by certain OMCs. As this is a deregulated product, OMCs charge a huge premium for it and spend a lot of money on marketing campaigns to entice clients.

According to the official, a well-known OMC followed the RON-95 trend and delivered a substandard commodity to purchasers while also causing a deficit for the government.

Pakistan sells around 200 million liters of HOBC (RON-95 and RON-97) every year and a petroleum development levy of Rs. 6 billion is to be collected at a rate of Rs. 30 per liter.

Via The News


  • Sir i entend express my own view
    I am sure that electric car do not reliable. While mechanic will also becom free which ehance crime and other bad thing will also enhance in the socity.

  • First the company complained of second company which was evading taxes but nothing happened so he followed the same path.same happening on Iranian oil which was being imported from Iran in cheap prices.first several company complained about it but later companies started to buy oil from Iran(purchasing indirectly from people) and selling it in Pakistani brand.besides this country is known as first Islamic republic and always first in corruption.

  • فیصد 90 عوام ان پاکستان از کرپٹ ون وے اور دی اودر


  • Get Alerts

    Follow ProPakistani to get latest news and updates.


    ProPakistani Community

    Join the groups below to get latest news and updates.



    >