The government on Sunday approved a significant Rs200 per litre increase in the fuel levy on high-octane petrol used in luxury vehicles, in a move to cope with the fuel crisis amid Middle East tensions.

According to a statement issued by the Prime Minister’s Office (PMO), Prime Minister Shehbaz Sharif, chairing a video-link meeting, announced that the current levy of Rs100 per litre on high-octane fuel would be raised by an additional Rs200, bringing the total levy to Rs300 per litre.

The government expects the measure to save Rs9 billion per month, with the savings earmarked to provide relief to the general public.

“This decision will reduce the economic burden on the country; the wealthiest segment will bear the cost,” the statement added.

The statement further clarified that the increase applies only to high-octane fuel used in luxury cars. Petrol prices for ordinary vehicles, as well as fares for public transport and air travel, will remain unchanged.

The prime minister had taken notice of the rising cost of high-octane fuel and instructed the relevant ministry to devise a strategy, the statement said.

The video-link meeting was attended by Finance Minister Aurangzeb, Information Minister Attaullah Tarar, Petroleum Minister Ali Pervaiz Malik, and senior government officials.