- The government should “establish” a transparent formula for petroleum products.
- Global world prices increase the import bill, according to sources.
- The government “plans” to maintain the consistency of petroleum levy rates.
Islamabad: The government will take the confidence of the public and the parliament concerning the process of adjusting prices of petroleum products, which would help the administration to support public and political support during periods of high prices, according to sources from the Ministry of Finance.
The news learned that the government has designed a strategy to minimize the increase in import costs by maintaining the prices of petroleum products without reducing the oil levy rate. This will prevent demand from increasing.
The sources of the Ministry of Finance said that the government should establish a transparent formula for petroleum products, including the oil tax. Getting involved in the expected rate of oil withdrawal and communicating any change to the public and the Parliament could help maintain political support even in the event of an increase in oil prices, they added.
“The increase in world oil prices increases the import bill, which can be managed by demand for rationing through higher prices. By reducing oil withdrawal during high oil price periods, consumption is inadvertently increased above optimal levels.
According to sources, the Ministry of Finance is of the opinion that the increase in world oil prices increases the import bill. It can be controlled by rationing by keeping the prices of high petroleum products.
The high oil prices will prevent an increase in demand for its products, which will help prevent any increase in the import bill.
Sources have indicated that reducing oil withdrawal at an elevated oil price will increase consumption. The government plans to maintain the consistency and transparency of oil withdrawal rates for effective budget management, sources said.
The government last month increased oil withdrawal from petrol and high -speed Diesel of RS10 per liter (from RS60 to RS70). Kerosene oil is subject to an oil withdrawal of 10.96 Rs per liter and light diesel oil RS7.75 per liter.
As part of an additional direct debit, the federal office approved a reduction in electricity prices from RS1.71 per unit for three months (April to June 2025).