The ongoing war in the Middle East and the closure of the Strait of Hormuz have put Pakistan’s already deteriorating economy at risk. Pakistan’s Shehbaz Sharif government has increased the duty on high-octane fuel used in luxury vehicles from Rs 100 per liter to Rs 300 per liter, an increase of Rs 200 per liter. This fuel is used in luxury vehicles.
The Shehbaz Sharif government approved the decision in a virtual meeting on Sunday amid economic crisis and global oil crisis. This increase will mainly apply to high-octane fuel used in the most expensive and luxury vehicles.
The prices of petrol and diesel are already skyrocketing in Pakistan. The price of common fuel was not increased for the middle class and the poor. But now the tax on owners of luxury vehicles is so heavy that the price of HOBC has reached Rs 535 per litre.
The government claims that this will save Rs 9 billion every month, and this money will be used to provide relief to the public. The reality is that Pakistan’s economy has reached such a state that now there is a preparation to run the country by charging higher taxes from those who own luxury cars. This decision will not affect the prices of normal petrol and diesel used in vehicles of common people, lower and middle class. There will be no increase in public transport or air fares due to this.
50 percent cut in fuel allowance
Fuel crisis has deepened in Pakistan due to Iran war. Two weeks ago, the government had announced an increase in the prices of petroleum products earlier this month. Apart from this, 50 percent reduction in fuel allowance for government vehicles, four-day work week and appeals to save fuel have been issued. Now they are asking for sacrifice from the owners of luxury cars.
It was also decided that 50 percent of public sector employees will work from home. However, those in essential services have been exempted from this. The government had appealed to the public to adopt fuel conservation measures to avoid the risk of the supply of petroleum products being affected in the coming days.