Prime Minister Shehbaz Sharif addresses the federal cabinet special 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 and the decision will come into effect immediately, the Prime Minister’s Office announced on Monday.
The ban comes alongside a decision to increase the oil tax on high-octane fuels.
Under a notification issued for this purpose, the tax on high octane was increased by Rs 200 per liter to Rs 305.37 per litre, raising the new price of high octane blending component (HOBC) in the country to Rs 535. The decision to increase the tax from Rs 100 to Rs 300 per liter was taken in a meeting chaired by the chief minister.
According to the new ban, if the use of high-octane fuel in the vehicle of any government department is unavoidable, the user can do so at his own expense. A strict ban has been imposed on its use at the government’s expense.
The objective of the decision, according to the Prime Minister’s Office, is to ensure the efficient and responsible use of national resources.
The Prime Minister directed all federal departments, authorities and subordinate institutions to ensure immediate and full implementation of the ban. It also directed relevant authorities to devise an effective system to monitor compliance and take strict action in case of violations.
Previously, a 50% reduction in fuel for government vehicles had already been implemented, along with the immobilization of 60% of government vehicles. The savings achieved through these measures have been used to provide relief to the public and provide cheaper fuel.
The prime minister said that strict implementation of austerity policy and reduction of unnecessary expenditure is the need of the hour, adding that this move will reduce government expenditure and allow better utilization of public resources.
The government on Sunday approved a significant increase of Rs 200 per liter in tax on high-octane fuel used in luxury vehicles, in a move to address the fuel crisis amid tensions in the Middle East.
According to a statement issued by the PMO, Shehbaz, who chaired a video conference meeting, announced that the tax of Rs 100 per liter on high-octane fuel would be increased by an additional Rs 200, taking the total tax to Rs 300 per litre.
The government expects the move to save Rs 9 billion per month, with the savings going towards providing relief to the general public.
The statement further clarified that the increase applies only to high-octane fuel used in luxury cars. Gasoline prices for ordinary vehicles, as well as fares for public transportation and air travel, will remain unchanged.
