Prime Minister Shehbaz Sharif on Sunday approved a Rs.200 per litre increase in the levy on high-octane petrol, raising the total levy from Rs100 to Rs300 per litre, in a move aimed at shifting the financial burden toward the country’s wealthiest segment and generating resources for public relief.

The decision was taken during a meeting held via video link and chaired by the prime minister, who observed that high-octane fuel is largely consumed by luxury vehicles used by the richest segment of society and therefore warranted a higher levy.

According to officials, the revised levy is expected to generate around Rs9 billion per month, which the government plans to utilise to provide relief to the general public and ease pressure on the economy.

The government clarified that the increase applies only to high-octane fuel used primarily in luxury vehicles, while prices of fuels commonly consumed by lower- and middle-income groups will remain unchanged. Authorities also said the decision would not affect public transport fares or air travel costs.

The prime minister had earlier taken notice of high-octane fuel pricing and directed the relevant ministry to prepare recommendations on the matter before approving the revised levy.

The meeting was attended by Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, Petroleum Minister Ali Pervaiz Malik, and other senior officials.