Surge in Hi-Octane prices triggers sharp drop in sale of premium fuel across Islamabad

2026-03-23 - 21:10

A sudden surge in Hi-Octane petrol prices has led to an unprecedented decline in sales at petrol pumps throughout Islamabad, with many stations reporting near-empty forecourts on Monday. Across the city including Sector F-10, Jinnah Avenue, F-7, Melody Market, Bhara Kahu and other areas, petrol stations witnessed a “customer-less” day, particularly for high-value premium fuel. Owners and attendants described unusually quiet scenes as motorists steered clear of filling up with Hi-Octane petrol. Talking to Pakistan Observer, a petrol pump proprietor said the slump began immediately after the announcement late Sunday by Prime Minister Shehbaz Sharif regarding a hefty new levy on high-octane fuel. The government imposed an additional Rs 200 per litre petroleum levy, driving the total levy on premium fuel to about Rs 300 per litre and pushing retail prices to between approximately Rs 530 and Rs 610 per litre at some stations. “Since last night, demand has drastically fallen,” the station owner said. “Only a couple of cars pulled in, and when we informed them that the price had jumped almost 90 per cent, they refused to buy. One commuter even pulled the nozzle out himself, saying he didn’t want it anymore.” Meanwhile, the motorists have expressed frustration and disbelief over the sudden spike. “I thought the staff was joking when they told me the price,” said Naeem, a private company executive filling fuel near Jinnah Avenue. “Rs 600 per litre is simply unreasonable. Even if you can afford it, you start questioning whether it’s worth it.” Another commuter, Sara, who drives a hybrid sedan, said the increase forced her to change plans. “I came for Hi-Octane because it’s better for the engine, but this price hike is shocking. I stopped midway and switched to regular petrol.” Hamza Tariq, a university student, added, “They say it’s to tax the wealthy, but many middle-class owners like me also rely on high-octane for engine performance.” Station owners in Bhara Kahu and other sectors echoed their concerns, saying the steep hike in Hi-Octane prices combined with low dealer margins is hitting business badly. “The government should have consulted dealers before unleashing such a policy,” one owner said. “This sudden move has a negative impact on sales and cash flow.” Officials of the Petroleum Division on the other hand, maintain the Hi-Octane levy increase is aimed at targeting luxury vehicle owners who primarily use premium fuel and relieving broader economic pressures by generating an estimated Rs 9 billion in monthly revenue. Government sources have reiterated that regular petrol prices — used by the majority of motorists — remain unaffected by the new levy, a point meant to shield lower-income consumers from the worst immediate effects. However, the broader debate underscores the economic sensitivity of fuel pricing and its cascading effects on transport costs, inflation and consumer sentiment. On the other hand, regarding price increase in regular petrol, the Oil and Gas Regulatory Authority (OGRA) has denied claims that it had proposed massive price hikes of petrol by Rs 73 or diesel by Rs 84 per litre, describing such social-media reports as “completely baseless and misleading.” The regulator urged the public to rely only on official government announcements for fuel price decisions. OGRA’s mandate is to make recommendations based on international oil prices, exchange rates and market analyses, but ultimate pricing authority lies with the federal government.