Pakistan Government Increases High-Octane Fuel Levy to PKR 300

Significant Fuel Levy Increase in Pakistan

The Pakistani government has announced a substantial hike in the levy on high-octane fuel, raising it by PKR 200 per litre, bringing the total to PKR 300. This decision was sanctioned by Prime Minister Shehbaz Sharif during a recent high-level meeting focused on fuel pricing and economic relief, as reported by a local news outlet. The high-octane fuel is primarily utilized in luxury vehicles.

Officials stated that this increase will not impact public transport fares or air travel costs. The government anticipates that this measure will save approximately PKR 9 billion monthly, which will be allocated to provide relief to the populace. The statement emphasized that the wealthiest segment of society will shoulder this financial burden.

Furthermore, the government clarified that fuel prices for regular vehicles, commonly used by lower and middle-income groups, will remain unchanged. This decision aims to prevent any rise in public transport or airfare costs.

Several senior ministers participated in the meeting, including Azam Nazir Tarar and Muhammad Aurangzeb. Earlier this month, the government had raised petrol and diesel prices by PKR 55 per litre due to escalating global oil prices, influenced by the ongoing US-Israel conflict with Iran. Consequently, petrol prices surged to PKR 321.17 per litre from PKR 266.17, while diesel prices increased to PKR 335.86 from PKR 280.86.

Additionally, airline fares in Pakistan have also seen an uptick following the rise in jet fuel prices. Domestic ticket prices have escalated by PKR 2,800 to PKR 5,000 for routes such as Karachi to Lahore and Islamabad, while international fares have surged by PKR 10,000 to PKR 28,000, particularly for flights to the Middle East and Central Asia, which have experienced fare increases of around PKR 15,000.