Pakistan increases levy on high-octane fuel

ISLAMABAD: The government has decided that the existing levy of Rs 100 per litre on high-octane fuel will be increased by Rs 200, bringing the total levy to Rs 300 per litre.

Prime Minister Shehbaz Sharif has approved a significant increase in the levy on high-octane fuel used by luxury vehicles.

The decision was taken during a high-level meeting chaired by the Prime Minister via video link, where he reviewed matters related to fuel pricing and economic relief.

The increase in high-octane fuel prices will not impact public transport fares and air travel costs.

The decision is aimed at reducing the economic burden by shifting it towards the affluent class. Fuel prices for vehicles used by lower and middle-income groups will remain unchanged.

This decision is also expected to generate savings of approximately nine billion rupees per month.

The Prime Minister has directed that these savings be utilized to provide relief to the general public.

The meeting was attended by Minister for Law and Justice Azam Nazir Tarar, Finance Minister Muhammad Aurangzeb, Minister for Information and Broadcasting Attaullah Tarar, and Minister for Petroleum Ali Pervaiz Malik, along with other senior government officials.

Earlier on March 6, the federal government had raised petrol and diesel prices by Rs55 per litre as surging global oil prices, fuelled by the US‑Israel war with Iran, put pressure on domestic energy costs.

The announcement was made by Petroleum Minister Ali Pervaiz Malik in a press conference alongside DPM Ishaq Dar and Finance Minister Muhammad Aurangzeb.

The new price of petrol will be Rs321.17 per litre from Rs266.17; whereas, the diesel rate will be Rs335.86 per litre from Rs280.86 after the review.