Prime Minister Shehbaz Sharif on Sunday approved a significant increase in the levy on high-octane fuel, which is mostly used in luxury vehicles. He directed that the additional revenue collected through this step should be used to provide relief to the general public.
The levy on high-octane petrol has been increased by Rs200 per litre, raising it from Rs100 to Rs300 per litre. With this change, the price of high-octane fuel has crossed Rs530 per litre. However, since these prices are not regulated by the government, they may vary.
The decision was taken during a video conference chaired by the prime minister. He stressed that the wealthier segment of society should take on a greater financial burden. The government estimates that this move will generate around Rs9 billion every month, which will be used to reduce economic pressure on ordinary citizens.
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Officials also made it clear that there will be no change in the prices of fuels commonly used by lower and middle income groups. The increase applies only to high-octane fuel used in luxury cars. Public transport fares and air travel costs will not be affected.
Earlier, the prime minister had reviewed the pricing of high-octane fuel and asked the concerned ministry to suggest policy options. The meeting was attended by Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, and Petroleum Minister Ali Pervaiz Malik, along with other senior officials.