Islamabad – The Federal government has decided to raise the existing levy from Rs100 per litre by an additional Rs200 per litre on high octane.
Following the decision, the levy on high-octane fuel will now stand at Rs300 per litre. The decision was made by Prime Minister Shehbaz Sharif during a meeting on Sunday which he chaired via video link and decided to increase the levy on high-octane fuel used in luxury vehicles.
The prime minister took notice of the current levy on high-octane fuel used in expensive vehicles and directed that it should be increased.
The prime minister’s Office said the measure is expected to generate savings of around Rs9 billion per month.
On the instructions of the prime minister, the savings will be used to provide relief to the public.
The statement added that the move would help reduce the economic burden while ensuring that the country’s wealthiest segment bears the additional cost.
It clarified that fuel prices for ordinary vehicles used by lower- and middle-income groups will remain unchanged, as the increase applies only to high-octane fuel typically used in luxury cars.
The government also stated that the decision would not affect public transport fares or airline ticket prices.
The prime minister had earlier taken notice of high-octane fuel pricing and directed the relevant ministry to formulate a policy in this regard.
The meeting was attended by Federal Law Minister Azam Nazeer Tarar, Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, Petroleum Minister Ali Pervaiz Malik, and other senior officials.
PM ADDRESS TO THE NATION
Earlier on Friday night addressing the nation PM took the nation into confidence on prevailing security situation in the region.
Prime Minister Muhammad Shehbaz Sharif announced that prices of petroleum products will not be increased despite a sharp surge in global oil prices.
He said a proposal had been presented to him to raise petrol prices by 76 rupees per litre and diesel by 177 rupees per litre, but he rejected it in the interest of the public on the occasion of Eid-ul-Fitr.
The Prime Minister said the federal government will bear a burden of 45 billion rupees to maintain current petrol prices.
He said the world is passing through extraordinary circumstances, adding that the ongoing war in the region has not only shaken the global economy, peace, and stability, but has also affected the lives of ordinary people.
He noted that global oil prices are skyrocketing, with crude oil rising from 72 dollars per barrel a few weeks ago to 158 dollars per barrel.
He acknowledged that the earlier increase of 55 rupees in petrol and diesel prices had already put significant pressure on the public, but appreciated the people for showing patience and wisdom.
The prime minister said that on the 13th of this month, a sharp increase in international oil prices led to another proposal to raise petroleum prices, which he had rejected to protect the common man.
He added that the government had already borne a burden of 24 billion rupees last week by not increasing prices.
Shehbaz Sharif said relevant ministries have been directed to ensure that government relief reaches deserving people, adding that all possible measures are being taken to shield citizens from the impact of rising petroleum prices.
He said the government has already implemented austerity measures and is ensuring effective utilization of national resources. He emphasized the need for unity, brotherhood, and sacrifice during these difficult times.
The Prime Minister also extended Eid-ul-Fitr felicitations to the nation, saying that in the current circumstances, this Eid calls for compassion, national solidarity, and collective responsibility.
