Govt’s goals for maintaining public, political support for fuel prices

• The government should “establish” a transparent formula for oil products.
• Higher global oil prices increase the import bill, sources say.
• Government “plans” to maintain consistency in oil levy rates.

Islamabad: The government will take on the public and parliament’s confidence in the process of adapting oil pricing, which would help the administration maintain public and political support during high prices, according to ministry sources.

The news He has learned that the government has devised a strategy to minimize the increasing costs of imports by maintaining oil prices without reducing the rate of oil levy. This will prevent the increase in demand.

Ministry of Finance sources said the government should create a transparent formula for oil products, including the oil levy. The commitment of scheduled oil levy rates and communicating any changes to the public and parliament could help maintain political support even during periods of increases in oil prices, they added.

“The highest global oil prices increase the import bill, which can manage demanding demand at higher prices, reducing the oil levy during periods of high oil prices, consumption is accidentally increased above optimal levels.

According to sources, the Ministry of Finance is of the opinion that increases global oil prices increases the import bill. It can be controlled by distribution by maintaining high oil prices.

High oil prices will prevent the increase in demand for its products, which will help prevent any increase in the import account.

Sources have reported that a reduction in oil levy in a time of high oil prices would increase consumption. The government plans to maintain consistency and transparency in oil levy rates for effective fiscal management, sources said.

Last month, the government increased the oil levy in petrol and high -speed oil by RS10 per liter (from RS60 to RS70). The kerosene oil is subject to an oil levy of Rs10.96 per liter and light oil oil Rs7.75 per liter.

As part of the additional levy, the Federal Council of Ministers approved a reduction in electricity prices by Rs1.71 per unit for three months (April to June 2025).