ISLAMABAD (MNN); Prime Minister Shehbaz Sharif has ordered a Rs200 per litre increase in the levy on high-octane fuel used by luxury vehicles, taking the total levy to Rs300 per litre.
The decision was made during a virtual meeting chaired by the premier, according to a statement issued by the Prime Minister’s Office. The move came after the prime minister took notice of the comparatively low levy on fuel used by the most expensive vehicles.
Previously set at Rs100 per litre, the levy has now been significantly raised to ensure that higher-income segments contribute more toward economic stability.
Officials said the revised levy is expected to generate savings of around Rs9 billion per month, which will be redirected to provide relief to the public. The government emphasized that the burden of this measure will fall on the wealthiest class, helping reduce pressure on the overall economy.
The Prime Minister’s Office clarified that there has been no increase in fuel prices for vehicles used by lower and middle-income groups. It also assured that the hike in high-octane fuel prices would not impact public transport fares or air travel costs.
The premier further directed the relevant ministry to formulate a comprehensive plan regarding high-octane fuel pricing.
The move comes amid broader austerity measures introduced by the government to tackle a fuel crisis triggered by the US-Israeli war on Iran. These steps include a 50 percent reduction in fuel allowances for official vehicles, implementation of a four-day work week, and partial work-from-home arrangements for public sector employees, excluding essential services.
Earlier, the government urged citizens to adopt fuel-saving practices to avoid potential disruptions in petroleum supply. While rejecting proposals for further fuel price hikes, the prime minister instructed authorities to ensure that relief measures are targeted only at deserving segments of society.
