Govt Increases High Octane Price by Shocking Rs. 200 per Litre

Prime Minister Shehbaz Sharif on Sunday approved a significant increase in the levy on high-octane fuel used primarily by luxury vehicles, directing that the additional revenue be utilized to provide relief to the general public.

The prime minister approved an increase of Rs. 200 per litre in the existing levy on high-octane fuel. With the revision, the total levy has now been raised from Rs. 100 per litre to Rs. 300 per litre. This means that high-octane petrol will now cost over Rs. 530 per litre and the price may variate as it not regulated by the government.

The decision was taken during a video-link meeting chaired by the prime minister, where he noted that the levy on high-octane fuel consumed by the country’s wealthiest segment should be raised.

According to the government, the measure is expected to generate Rs. 9 billion in monthly savings, which will be redirected toward providing relief to the public.

Officials said the decision would help reduce pressure on the economy, while shifting the financial burden toward the wealthiest segment of society.

At the same time, the government clarified that prices of fuels commonly used by lower- and middle-income groups will remain unchanged.

The government also emphasized that the increase applies only to high-octane fuel typically used in luxury vehicles, and will not affect public transport fares or air travel costs.

The prime minister had earlier taken notice of high-octane fuel pricing and directed the relevant ministry to prepare policy recommendations on the matter.

The meeting was attended by Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, Petroleum Minister Ali Pervaiz Malik, and other senior officials.