The petroleum levy on high-octane fuel has been increased from Rs100 to Rs300 per litre.
According to details surfaced on Sunday, the decision will not lead to any rise in public transport or air fares. The decision was taken at a video-link meeting chaired by Prime Minister Shehbaz Sharif, where the use of high-octane fuel in luxury vehicles owned by the wealthiest segment came under review.
The prime minister said the levy on high-octane fuel should be raised. He approved an increase of Rs200 per litre on top of the existing Rs100 levy applied to luxury vehicles used by the affluent class.
With immediate effect, a levy of Rs300 per litre will apply to high-octane fuel used in the most expensive vehicles. The measure is expected to save the government Rs9 billion per month, and, as directed by the prime minister, the savings will be used to provide relief to the public.
It is pertinent to note that fuel prices for ordinary vehicles used by lower and middle-income groups remain unchanged. Only high-octane fuel used in luxury vehicles has been subjected to the increase. The decision is expected to ease pressure on the economy, with the burden borne by the wealthiest segment of society.
