Govt raises high-octane fuel levy by Rs200 per litre

• High-octane fuel levy climbs to Rs300 per litre after hike.
• Decision not to affect public transport, airline fares: PMO.
• Govt expects Rs9bn each month in savings from levy hike.
  

Prime Minister Shehbaz Sharif on Sunday approved an increase of Rs200 per litre levy on high-octane fuel used in luxury vehicles, a move expected to generate Rs9 billion in monthly savings for the government.

The development emerged in a meeting virtually chaired by the premier, who had taken notice of the Rs100 per litre levy on high-octane fuel, read a statement issued by the Prime Minister's Office.  

During the meeting, PM Shehbaz stressed raising the high-octane fuel levy and approved an increase of Rs200 per litre, said the statement.

With the fresh increase, the levy on the high-octane fuel has climbed to Rs300 per litre.

The government has increased the levy only on the fuel used in luxury vehicles, with no hike on fuel for ordinary or mid-range vehicles, said the statement.

It added that PM Shehbaz directed that the anticipated Rs9 billion in savings from the levy hike be used to provide relief to the public.

The statement further emphasised that fares for public transport and airlines will not be affected, and that the measure ensures the country’s wealthiest segment bears a proportionate economic burden, easing pressure on the national economy.

The decision follows a directive by PM Shehbaz, who instructed relevant ministries to draft an implementation plan for the pricing of high-octane fuel.

Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, Petroleum Minister Ali Pervaiz Malik, and other senior government officials attended the meeting.

The announcement to raise the levy on high-octane fuel comes two days after the government decided to keep petrol and diesel prices unchanged.

The rates have been held steady for two weeks following a 20% hike earlier this month, prompted by global oil supply disruptions triggered by the war in the Middle East.

On March 6, the government raised petrol and diesel prices by Rs55 per litre each as global oil prices surged amid the US-Israel conflict with Iran.

Following the increase, Pakistan unveiled a wide-ranging austerity and fuel-conservation plan to mitigate the impact of rising global oil prices.