Shehbaz Sharif Increases Levy on High-Octane Fuel for Luxury Vehicles | Pakistan News

Pakistan’s Prime Minister Shehbaz Sharif has directed an increase in the levy on high-octane fuel used in luxury vehicles by Rs200 per litre, bringing the total levy to Rs300 per litre, according to a statement released Sunday by the Prime Minister’s Office (PMO).

The decision, made during a meeting chaired virtually by Sharif, aims to generate an additional Rs9 billion per month in revenue, which the government intends to use for public relief measures. The PMO statement emphasized that the increased levy will primarily affect owners of “the most expensive vehicles” and will not impact fuel prices for ordinary cars used by the lower and middle classes.

“The prime minister took notice that the levy on high-octane fuel used in the most expensive vehicles should be increased,” the PMO stated. The government has assured that the measure will not lead to increases in public transport fares or air travel costs.

The move comes amid broader austerity measures implemented by the government in response to a fuel crisis, triggered in part by the conflict involving the US and Israel in Iran. Earlier this month, the government announced a 50 percent reduction in fuel allowances for official vehicles and a shift to a four-day work week, with half of the public sector workforce working remotely, excluding essential service providers.

Just days prior, the government appealed to the public to conserve fuel to prevent potential supply disruptions. While Sharif had previously rejected proposals for further increases in petroleum product prices, he instructed relevant ministries to develop a targeted relief mechanism for those most in need.

The increase in the high-octane fuel levy was directed by the Prime Minister on Sunday, according to reports from both the Dawn and Tribune newspapers.