Lahore – In a strategic move aimed at shifting the economic burden toward the wealthiest segment of society, Prime Minister Shehbaz Sharif has officially approved a massive increase in the petroleum levy on high-octane fuel. During a high-level video-link meeting on Sunday, the Prime Minister directed that the existing levy on the premium fuel—primarily consumed by luxury vehicle owners—be raised by Rs 200 per litre.
This adjustment brings the total levy from Rs. 100 to Rs. 300 per litre, effectively pushing the market price of high-octane petrol to a staggering Rs. 534 per litre. The Prime Minister emphasised that this bold fiscal measure is designed to generate approximately Rs. 9 billion in monthly savings, which the government intends to redirect immediately toward providing relief packages for the general public and low-income groups.
The session, which included key cabinet members such as Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik, underscored the government’s “Robin Hood” approach to the current economic crisis.
By targeting the high-performance fuel used in expensive SUVs and sports cars, the administration seeks to stabilise the economy without further squeezing the middle and lower classes. Government officials were quick to clarify that the prices of standard petrol and diesel—the primary fuels for public transport and everyday commuting—will remain unchanged.
Furthermore, the Prime Minister assured the nation that this targeted hike would have no impact on public transport fares or the cost of air travel, as it is strictly confined to the niche high-octane market.
This policy shift follows a recent directive from the Prime Minister to the Ministry of Petroleum to find innovative ways to cross-subsidise energy costs. By isolating the “luxury” tier of fuel consumption, the government hopes to create a sustainable revenue stream that cushions the impact of global inflation on the vulnerable.
While the nearly 60% increase in the total cost of high-octane may shock the luxury automotive sector, the Sharif administration maintains that it is a necessary step toward economic equity.
As the new pricing takes effect, all eyes will be on the Ministry of Finance to see how quickly the promised Rs. 9 billion monthly dividend is translated into tangible subsidies for essential food items and electricity for the masses.
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