Government Increases Petroleum Levy on High-Octane Fuel by Rs200 per Litre

ISLAMABAD: The government has significantly increased the petroleum levy on high-octane fuel by Rs200 per litre, raising the total levy from Rs100 to Rs300 per litre.

The decision was taken during a meeting chaired by Prime Minister Shehbaz Sharif via video link, where key federal ministers and senior officials reviewed measures to manage economic pressures.

According to officials, the increase specifically targets high-octane fuel used in luxury vehicles, ensuring that the financial burden falls on the wealthiest segment of society rather than the general public.

The meeting was attended by Federal Law Minister Azam Nazeer Tarar, Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, and Petroleum Minister Ali Pervaiz Malik, among others.

With the revised levy now set at Rs300 per litre, the government expects to generate savings of approximately Rs9 billion per month. Authorities stated that these funds will be redirected to provide relief to the general public.

Officials emphasized that prices of regular fuel used by lower- and middle-income groups will remain unchanged, and the decision will not impact public transport fares or airline ticket prices.

The move is part of broader efforts to reduce the economic burden while ensuring that higher-income groups contribute more during the current financial challenges.