Pakistan Fuel Prices: Levy Hikes & Relief Measures Explained | Dawn, Samaa TV & More

Islamabad, Pakistan – The Pakistani government has significantly increased the levy on high-octane fuel used in luxury vehicles, raising it from 100 Pakistani Rupees (PKR) to 300 PKR per litre, a move officials say is designed to ease economic pressures and generate additional revenue. The decision, approved by Prime Minister Shehbaz Sharif on Sunday, will effectively push the price of high-octane fuel to 534 PKR per litre.

According to an official statement released by the Prime Minister’s Office, the increased levy is intended to shift the financial burden onto wealthier segments of the population. The government anticipates the measure will generate approximately 9 billion PKR per month in additional revenue. “The prime minister directed that the levy on high-octane fuel be increased so that the wealthy segment contributes more to the economy,” the statement read.

Finance Minister Muhammad Aurangzeb stated that the government absorbed a burden of 69 billion PKR on petroleum product prices to provide relief to the public, indicating a broader strategy of targeted economic adjustments. He also indicated that a targeted relief package for deserving segments of the population is currently being formulated.

The government has clarified that the price increase will apply specifically to high-octane fuel used in luxury vehicles and will not affect the prices of fuel used in ordinary vehicles, public transport fares, or airline ticket prices. Petroleum Minister Ali Pervaiz Malik and other senior officials were present during the meeting where the decision was finalized.

Prime Minister Sharif had previously directed the concerned ministry to formulate a policy framework addressing the issue of high-octane fuel consumption. The move comes after a recent fire at Gul Plaza in Pakistan, and amid concerns about the overall fuel crisis, though officials have not directly linked the two events. The Pakistan Super League (PSL) is also set to commence without spectators, limited to matches in Karachi and Lahore.

The increased levy follows a recent incident where Pashto TikToker Outlofara was shot dead by her husband in Islamabad, and the passing of PPP senator Sherry Rehman’s daughter, Marvi Malik, at the age of 35. These events occurred alongside the economic policy decisions, highlighting a period of diverse national developments.