Govt Plans to Curb Import Bill by Maintaining High Petrol Prices

In a bid to control the rising import bill in case of any global oil price volatility in the future, the federal government has decided to keep domestic petroleum product prices unchanged and maintain existing petroleum levy rates. The government is of the view that reducing the petroleum levy during times of high international oil prices leads to increased local consumption, which hurts the import bill. To prevent this, the government intends to discourage excess demand by retaining higher prices, reported a national daily. The finance ministry has proposed a transparent pricing formula for petroleum products, including the levy component. By keeping the public and parliament informed about any adjustments, the government is trying to secure continued political and public support even during periods of price hikes. Last month, the petroleum levy on petrol and high-speed diesel was raised by Rs. 10 per litre, bringing the rate to Rs. 70 per litre. Officials emphasized that a consistent and transparent petroleum levy policy is key to fiscal discipline and to controlling excessive fuel demand, especially during periods of high global oil prices.