Prime Minister Shehbaz Sharif has approved a sharp increase in the levy on high-octane fuel used in luxury vehicles, raising it to Rs300 per litre in a move aimed at easing economic pressure and generating additional revenue.
According to a statement issued by the Prime Minister’s Office, the decision was made during a virtual meeting chaired by the premier to review pricing measures for high octane fuel. The levy, previously set at Rs100 per litre, has been increased by Rs200, bringing the total to Rs300 per litre.
Officials said the revised levy is expected to generate around Rs9 billion per month, which the government plans to utilise for public relief initiatives. The policy is designed to place a greater financial burden on higher-income groups while shielding lower- and middle-income citizens from additional costs.
The government emphasised that the prices of fuels used in ordinary vehicles remain unchanged, ensuring that public transport fares and air travel costs will not be affected by the increase.
The move comes amid broader austerity measures introduced to address a worsening fuel crisis linked to global geopolitical tensions. Recent steps include reducing fuel allocations for official vehicles, implementing a four-day work week, and expanding remote work across the public sector.
Authorities have also urged citizens to adopt fuel-saving practices to help prevent supply disruptions, while the prime minister has ruled out further increases in general petroleum prices, directing that any relief measures be targeted toward those most in need.