Prime Minister Shehbaz Sharif has approved a major increase in the levy on high-octane fuel. The move aims to raise funds for public relief while targeting luxury fuel use.
Under the new policy, the levy has been increased by Rs. 200 per litre. This brings the total levy to Rs. 300 per litre, up from Rs. 100. As a result, high-octane petrol prices are expected to cross Rs. 530 per litre. However, the final price may vary as it is not strictly regulated.
PM Shehbaz made this decision during a virtual meeting with senior officials. The discussion focused on placing a higher financial burden on wealthier consumers. High-octane fuel is mostly used in luxury vehicles, making it a suitable target for higher taxation.
Officials said the revised levy could generate around Rs. 9 billion each month. These funds will be used to support relief measures for the general public. The government believes this step will help reduce economic pressure.
According to officials, the policy aims to create a fair balance. It shifts the burden toward those who can afford higher fuel costs. At the same time, PM Shehbaz is focused on protecting lower- and middle-income groups.
The government has made it clear that regular fuel prices will not change. Petrol and diesel used by the general public will remain stable. This ensures that daily transport costs are not affected.
Authorities also confirmed that public transport fares will stay the same. Air travel costs are also not expected to increase. The policy applies only to high-octane fuel users.
Earlier, PM Shehbaz had taken notice of rising high-octane prices. He directed relevant departments to prepare policy proposals. This latest decision reflects those recommendations.
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The meeting included key officials such as Muhammad Aurangzeb, Attaullah Tarar, and Ali Pervaiz Malik. Other senior government members were also present.
