PM raises HOBC levy on luxury vehicles by Rs200 per litre to Rs300

• Premier Shehbaz-led meeting decides levy on high-octane fuel for luxury cars be increased from Rs100 to Rs300 per litre

• Says move targets wealthy consumers, shielding lower- and middle-income groups

• Says govt to pass Rs9b monthly savings to public as relief as fuel prices for ordinary vehicles remain unchanged

• Finance and petroleum ministries tasked to implement plan effectively to reduce economic burden, ensure fair contribution from affluent segment

 LAHORE: The federal government, on the direction of Prime Minister Muhammad Shehbaz Sharif, has decided to increase the levy on high octane blending component (HOBC) by Rs200 per litre—from Rs100 to Rs300— targeting fuel used by luxury vehicles to shift the financial burden onto the country’s wealthiest segment, state media reported.

The decision was taken during a video-link meeting chaired by the prime minister, where it was emphasized that high-octane fuel—primarily consumed by high-end vehicles—should carry a higher levy to ease pressure on the national economy and ensure greater contribution from affluent consumers, according to a statement issued by the Prime Minister’s Office (PMO).

وزیرِ اعظم محمد شہباز شریف کی زیر صدارت وڈیو لنک اجلاس میں امیر ترین طبقے کے زیر استعمال پر تعیش (لگژری) گاڑیوں میں استعمال ہونے والے ہائی آکٹین فیول کے حوالےسے اہم فیصلہ

وزیراعظم نے امیر ترین طبقے کے زیر استعمال پر تعیش (لگژری) گاڑیوں پر موجودہ لیوی جو کہ 100 روپے فی لیٹر ہے،…

— Government of Pakistan (@GovtofPakistan) March 22, 2026

The prime minister observed that the levy on fuel used in the most expensive vehicles should be enhanced, stating that it would now be Rs300 per litre, the PMO said.

This move is expected to generate Rs9 billion in monthly savings, which, as directed by Prime Minister Shehbaz Sharif, will be passed on to the public in the form of relief.

The decision is aimed at reducing the overall economic burden while ensuring that the wealthiest segment bears a proportionate cost, without affecting the broader population.

Importantly, fuel prices for ordinary vehicles used by lower- and middle-income groups remain unchanged, as the increase applies solely to high-octane fuel consumed by luxury vehicles. The measure will also not result in any increase in public transport fares or air travel costs, ensuring that the general public remains insulated from the impact.

لاہور: 22 مارچ 2026.

وزیرِ اعظم محمد شہباز شریف کی زیر صدارت وڈیو لنک اجلاس میں امیر ترین طبقے کے زیر استعمال پر تعیش (لگژری) گاڑیوں میں استعمال ہونے والے ہائی آکٹین فیول کے حوالےسے اہم فیصلہ کیا گیا.

وزیراعظم نے نوٹس لیا کہ مہنگی ترین گاڑیوں میں استعمال ہونے والے ہائی آکٹین…

— Prime Minister's Office (@PakPMO) March 22, 2026

The prime minister had earlier taken notice of high-octane fuel pricing and directed the relevant ministry to formulate a comprehensive plan, leading to the current decision.

The meeting was attended by Federal Minister for Law and Justice Azam Nazeer Tarar, Federal Minister for Finance and Revenue Muhammad Aurangzeb, Federal Minister for Information and Broadcasting Attaullah Tarar, Federal Minister for Petroleum and Natural Resources Ali Pervaiz Malik, along with other senior officials.

PM expresses grief over Sherry Rehman’s daughter’s death

Meanwhile, Prime Minister Muhammad Shehbaz Sharif expressed deep sorrow and grief over the death of Senator Sherry Rehman’s daughter.

The prime minister extended his heartfelt condolences to Senator Sherry Rehman and her family, terming the loss “beyond words.”

He expressed solidarity with the bereaved family and prayed for the elevation of the departed soul’s ranks and for patience and strength for the grieving family.

“In this hour of grief, we stand with the mourning family in their sorrow,” the prime minister said.