Business Desk 
Mar 23, 2026
The federal government on Sunday announced an increase of Rs200 per litre levy on high-octane fuel, used in luxury vehicles, a more expected to generate Rs9 billion in monthly savings.
The Prime Minister Office (PMO), in a notification issued, said: "The levy on high octane blending component (HOBC) has been raised by Rs200 per litre, taking it to Rs305.37 per litre. Previously, the levy stood at Rs105.37 per litre.
Following the increase, the price of HOBC has raised to Rs535 per litre, effective immediately. The move comes days after the government had opted to hold the petroleum levy unchanged on petrol and high-speed diesel (HSD), as global fuel markets remained under pressure due to the ongoing conflict involving the United States (US), Israel and Iran.
“This decision will save the government Rs9 billion per month and as per the prime minister’s instructions, will be used to provide relief to the public,” said the PMO, adding that the move was aimed at reducing the economic burden by shifting it to higher-income groups. “The richest class in the country will bear the burden."
Earlier, Prime Minister Shehbaz Sharif announced austerity measures, including a 50% cut in fuel allowances for official vehicles and the introduction of a four-day work week for government offices.
The government also decided that 50pc of public sector employees would work from home, except those providing essential services.
