Prime Minister Shehbaz Sharif addresses the Federal Cabinet Special in Islamabad, Pakistan, March 4, 2025. Photo: PID/ File
ISLAMABAD:
Prime Minister Shehbaz Sharif has banned the use of high-octane fuel in all government vehicles with immediate effect, the Prime Minister’s Office announced on Monday.
The ban comes with the decision to increase the oil tax on high-octane fuel.
According to a notification issued for this purpose, the duty on high octane has been increased by Rs200 per liter to Rs305.37 per litre, pushing the new price of High Octane Blending Component (HOBC) in the country to Rs535. The decision to raise the levy from Rs100 to Rs300 per liter was taken at a meeting chaired by the Prime Minister.
Under the new ban, the user can do so at their own expense if the use of high-octane fuel in a public ministry vehicle is unavoidable. A strict ban on its use at the expense of the state has been introduced.
According to the Prime Minister’s Office, the purpose of the decision is to ensure 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. He also directed the relevant authorities to design an effective system to monitor compliance and to take strict action in case of violations.
Previously, a 50% reduction in fuel for government vehicles had already been implemented, along with the grounding of 60% of government vehicles. The savings achieved through these measures have been used to help the public and provide cheaper fuel.
The Prime Minister said that strict implementation of the austerity policy and reduction of unnecessary expenditure is the need of the hour, adding that this move will reduce public expenditure and enable better utilization of public resources.
The government on Sunday approved a significant hike of Rs 200 per liter in the tax on high-octane fuel used in luxury cars, in a move to deal with the fuel crisis amid Middle East tensions.
According to a statement issued by the PMO, Shehbaz, who was chairing a video link meeting, announced that the Rs100 per liter tax on high-octane fuel would be increased by another Rs200, taking the total tax to Rs300 per litre.
The government expects the measure to save Rs9 billion a month, with the savings earmarked for providing relief to the public.
The statement further clarified that the increase only applies to high-octane fuel used in luxury cars. Gasoline prices for regular vehicles as well as prices for public transport and air travel remain unchanged.
