Government Raises High-Octane Fuel Levy by Rs200

Pakistan has raised the levy on high-octane fuel by Rs200 per litre, aiming to save Rs9bn monthly for public relief. 

Prime Minister Shehbaz Sharif on Sunday announced a significant increase in the levy on high-octane fuel, raising it by Rs200 per litre. The premium-grade fuel, primarily used in luxury and high-performance vehicles, will now carry a total levy of Rs300 per litre.

According to the Prime Minister’s Office, the decision was taken during a virtual meeting to review fuel pricing. Officials stated that the measure is expected to generate Rs9 billion in monthly savings, which will be redirected toward public relief initiatives.

The government emphasized that the increase targets higher-income groups, ensuring that ordinary motorists, public transport, and air travel remain unaffected. Finance Minister Muhammad Aurangzeb described the move as part of a broader strategy for “targeted relief,” noting that the government has already absorbed Rs69 billion in fiscal pressure to shield lower- and middle-income households.

The announcement comes amid global oil market instability following the US-Israel conflict with Iran, which has disrupted supply chains. In recent weeks, the government has introduced austerity measures, including reduced fuel allowances for officials and a four-day work week. Authorities continue to urge citizens to adopt conservation practices such as carpooling and remote work to mitigate the energy crisis.