Web Desk: Pakistan’s Prime Minister Shehbaz Sharif has approved a significant increase in the levy on high-octane fuel used primarily in luxury vehicles, aiming to shift the economic burden toward the wealthiest segment of society, officials said on Sunday.
During a high-level meeting held via video link, Sharif directed authorities to raise the existing levy on high-octane fuel by 200 rupees per litre, bringing the total to 300 rupees per litre. The fuel type is commonly used in high-end vehicles owned by affluent consumers.
Officials said the move is expected to generate savings of around 9 billion rupees per month. The government plans to redirect these savings toward public relief measures, although specific steps have yet to be outlined.
Moreover, the prime minister emphasized that the increase would not affect fuel prices for lower- and middle-income groups. Petrol and diesel used in regular vehicles will remain unchanged, ensuring that the broader population is shielded from additional financial pressure.
Authorities also confirmed that the decision will not lead to higher fares for public transport or air travel, as those sectors do not rely on high-octane fuel.
Sharif had earlier taken notice of pricing disparities related to high-octane fuel and instructed the relevant ministries to propose a policy response. Consequently, the new levy aims to reduce the strain on the national economy while ensuring that wealthier citizens contribute a greater share.
Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, Petroleum Minister Ali Pervaiz Malik, and senior government officials attended the meeting.
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