ISLAMABAD: The federal government on Sunday decided to sharply increase the levy on high-octane fuel in a move aimed at placing greater financial responsibility on affluent vehicle owners.
The decision was taken during a high-level meeting chaired by Prime Minister Shehbaz Sharif via video link, where matters related to fuel pricing and economic relief were reviewed.
Under the new policy, the existing levy of Rs100 per litre on high-octane fuel will be increased by Rs200, bringing the total levy to Rs300 per litre.
Officials said the increase will not affect public transport fares or air travel costs, as high-octane fuel is largely consumed by high-end vehicles.
The government aims to shift the financial burden towards the affluent class, while keeping fuel prices for lower- and middle-income groups unchanged.
The move is also expected to generate savings of around Rs9 billion per month. The prime minister has directed authorities to utilize these funds to provide relief to the general public.
The meeting was attended by Law Minister Azam Nazir Tarar, Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, and Petroleum Minister Ali Pervaiz Malik, along with other senior officials.
