ISLAMABAD – The federal government sharply reduced petroleum levy on High-Octane fuel, lowering it by Rs214.12 per litre, passing relief to privileged consumers using premium fuel.
The levy on HOBC has been cut from Rs305.37 per litre to Rs91.25 per litre as part of the latest petroleum pricing review announced on Friday.
The reduction has already translated into lower retail prices. Excellium Hi-Octane is now being sold for Rs350 per litre at some stations after substantial tweaks from the levels seen earlier this year.
The latest move comes just months after the government imposed a steep increase in the Hi-Octane levy. In March 2026, authorities raised levy by Rs. 200 per litre, taking it to nearly Rs. 300 per litre. The increase pushed Hi-Octane prices to around Rs. 535 per litre by the end of the month, drawing criticism from motorists who rely on premium-grade fuel.
Prices climbed even further in early April as uncertainty in global oil markets added to the pressure. During that period, Hi-Octane was being sold for as much as Rs. 590 per litre at some fuel stations, making it prohibitively expensive for many consumers.
The latest reduction effectively reverses a large portion of those increases, cutting the price of Hi-Octane by more than Rs. 240 per litre from its peak. While premium fuel is primarily used in luxury and high-performance vehicles, the sharp decline is being viewed as one of the most significant price corrections in Pakistan’s fuel market in recent months.
The government also reduced petroleum levy on MS Petrol while increasing the levy on high-speed diesel, amid the latest tweaks in fuel prices. From June 20, petroleum levy on petrol has been cut by Rs40.49 per litre, bringing it down from Rs106.74 to Rs66.25 per litre. Officials said the move was aimed at providing relief to consumers following a decline in international crude oil prices.
In contrast, the petroleum levy on high-speed diesel has been increased by Rs19.71 per litre. As a result, the levy on diesel has risen from Rs53.26 to Rs72.97 per litre.
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