Prime Minister Shehbaz Sharif addresses the special federal cabinet meeting in Islamabad, Pakistan on March 4, 2025. Photo: PID/File
ISLAMABAD:
Prime Minister Shehbaz Sharif has banned the use of high-octane fuel in all government vehicles, with the decision taking effect immediately, the Prime Minister’s Office said on Monday.
The ban comes alongside a decision to increase the oil tax on high-octane fuels.
As part of a notification issued to this effect, the levy on high octane components has been increased by Rs 200 per liter to Rs 305.37 per litre, pushing the new price of high octane blending component (HOBC) in the country to Rs 535. The decision to increase the levy from Rs100 to Rs300 per liter was taken at a meeting chaired by the Prime Minister.
Under the new ban, if the use of high-octane fuel in a government department’s vehicles is unavoidable, the user can do so at their own expense. Its use at government expense was strictly prohibited.
The aim of this decision, according to the Prime Minister’s Office, is to ensure efficient and responsible use of national resources.
The Prime Minister ordered all federal departments, authorities and subordinate institutions to ensure immediate and complete implementation of the ban. He also asked the relevant authorities to design an effective system to monitor compliance with the provisions and take strict action in case of violations.
Previously, a 50% reduction in fuel consumption of government vehicles had already been implemented, as well as the immobilization of 60% of government vehicles. The savings made through these measures were used to relieve the population and provide cheaper fuel.
The Prime Minister said strict implementation of austerity policy and reduction of unnecessary expenditure was the need of the hour, adding that the measure would reduce government expenditure and enable better utilization of public resources.
The government on Sunday approved a significant increase of Rs 200 per liter in the tax on high-octane fuel used in luxury vehicles, in a bid to tackle the fuel crisis amid tensions in the Middle East.
According to a statement issued by the PMO, Shehbaz, chairing a meeting via video link, announced that the levy of Rs 100 per liter on high octane fuel would be increased by another Rs 200, taking the total levy to Rs 300 per litre.
The government expects this measure to save Rs 9 billion per month, with the savings intended to provide relief to the general public.
The release further clarified that the increase only applies to high-octane fuel used in luxury cars. Gasoline prices for ordinary vehicles, as well as prices for public transport and air travel, will remain unchanged.
