Prime Minister Shehbaz Sharif on Sunday approved a Rs. 200/liter increase in the levy on high-octane fuel, primarily used in luxury vehicles, with expectations of the decision generating Rs. 9 billion in monthly savings for the government.
In a notification, the Prime Minister’s Office said the levy on high octane blending component (HOBC) had been raised to Rs. 305.37/liter from Rs. 105.37/liter. It said the premier had taken notice of the levy on high-octane fuel and approved its increase in a bid to avoid pressure on consumers who utilize petrol.
Including the revised levy, the ex-depot price of HOBC has climbed to a minimum of Rs. 535/liter. The PMO statement emphasized that no hike had been introduced on fuel for ordinary or mid-range vehicles, adding fares for public transport and airlines would not be affected. It said the measure ensures the country’s wealthiest segment bears a proportionate economic burden, easing pressure on the national economy.
Separately, the Prime Minister’s Office said Sharif had also imposed an immediate ban on the use of high-octane petrol in government vehicles as part of ongoing austerity measures. The ban came into effect immediately and strictly prohibits the use of high-octane fuel at government expense. However, officials may use such fuel in official vehicles if they are willing to bear the cost from their own pocket.
According to the statement, the prime minister said the measure aimed to ensure efficient and responsible utilization of national resources, adding all federal ministries, departments, authorities and subordinate institutions had been directed to ensure full and immediate compliance. He said the savings generated through these steps would be utilized for relief to the public and help ensure the availability of affordable fuel.
Emphasizing the importance of austerity, the prime minister said reducing unnecessary expenditures was a necessity, adding his latest decision would help cut government spending while improving the use of public funds. He directed the establishment of an effective monitoring mechanism to oversee implementation, warning strict action would be taken in case of any violation.