ISLAMABAD: Pakistan Prime Minister Muhammad Shehbaz Sharif has approved a significant increase in the levy on high-octane fuel used by luxury vehicles, as part of measures to ease the economic burden on the general public.
The decision was made during a high-level meeting chaired by the Prime Minister via video link, where officials reviewed matters related to fuel pricing and economic relief, Radio Pakistan reported on Sunday.
Under the new policy, the existing levy of Rs100 per litre on high-octane fuel will increase by Rs200, bringing the total levy to Rs300 per litre. Authorities emphasised that the hike will not affect public transport fares or air travel costs, and fuel prices for vehicles used by lower- and middle-income groups will remain unchanged.
The move is aimed at shifting part of the economic burden onto wealthier vehicle owners while generating estimated savings of approximately Rs9 billion per month. The Prime Minister has directed that these savings be used to provide relief to the wider public.
It may be recalled that Prime Minister Shehbaz Sharif on Friday announced that the federal government would absorb a significant financial burden to prevent a sharp increase in petroleum prices, offering relief to citizens ahead of Eid ul Fitr.
In a televised address to the nation, the premier said he had rejected a summary proposing a steep increase in petrol and high-speed diesel prices, despite mounting pressure caused by a surge in global oil markets.
The prime minister linked the rising pressure on fuel prices to escalating tensions in the Middle East, which have disrupted global energy markets.
Recent global developments suggest the situation could worsen further. Analysts warn that crude oil prices may climb towards $200 per barrel if supply disruptions persist, particularly due to instability around the Strait of Hormuz, a critical route for nearly one-fifth of global oil shipments.
