The high-octane fuel levy increase in Pakistan has been approved by Prime Minister Shehbaz Sharif, raising the levy by Rs200 per litre. The move targets fuel used in luxury vehicles and aims to reduce government spending. Officials expect the measure to generate around Rs9 billion in monthly savings
According to the Prime Minister’s Office, the levy on high octane blending component (HOBC) has increased from Rs 105.37 to Rs 305.37 per litre.
As a result, the total price of high-octane fuel has reached Rs535 per litre. The revised rates have taken effect immediately.
In addition, the government has banned the use of high-octane fuel in official vehicles. The directive applies across all ministries, departments, and public institutions. Officials may still use the fuel, but only at their own expense. Authorities have also ordered strict monitoring and warned of action in case of violations.
The government said the decision supports efficient use of national resources. It also aims to shift the financial burden toward wealthier segments that use high-end fuel. Authorities confirmed that savings from the levy will help provide relief to the public and maintain affordable access to fuel.
Officials clarified that the levy increase will not affect public transport fares or airline ticket prices. Fuel for ordinary and mid-range vehicles also remains unchanged. This ensures that the policy does not directly burden the general public.
Read: Pakistan Govt Plans Targeted Fuel Relief Amid Global Supply Crisis
The announcement follows recent decisions to keep petrol and high-speed diesel prices unchanged. Earlier this month, prices had surged due to global oil supply disruptions linked to Middle East tensions.
At the same time, the government adjusted petroleum levies to manage economic pressure while avoiding further increases in consumer costs. The fuel levy hike forms part of a wider austerity and fuel conservation strategy. The government aims to control expenditure and improve fiscal management amid economic challenges.
