ISLAMABAD: In another step towards tightening austerity measures, Prime Minister Shehbaz Sharif on Monday imposed a complete ban on the use of high-octane fuel in government vehicles, shortly after the announcement of a Rs200 increase in the levy on high-octane fuel.

The decision comes amid government efforts to manage the economic impact of rising global oil prices following the US-Israel war on Iran, which has triggered a fuel crisis.

According to an announcement by the Prime Minister’s Office (PMO), the premier directed relevant authorities to take action against government officials who used high-octane in their official vehicles.

“If necessary, the officials will have to bear the cost of high-octane fuel from their own pocket,” the announcement quoted PM Shehbaz as saying.

He stressed the need for maximum conservation of fuel in view of global oil crisis due to the US-Israel war on Iran, and Iran’s subsequent attacks on United States air bases and other facilities in Gulf States, including their oil refineries.

On Sunday, PM Shehbaz had issued a directive to increase the levy on high-octane fuel used by luxury vehicles by an additional Rs200 per litre, bringing the total levy to Rs300 per litre.

“The prime minister took notice that the levy on high-octane fuel used in the most expensive vehicles should be increased,” the statement had said. The prices of fuel used in ordinary vehicles used by the lower and middle classes has not been increased, preventing an increase in the price of public transport or airfare.

It is expected that the decision will save the government Rs9 billion per month and as per the prime minister’s instructions, this will be used to provide relief to citizens.

The decision may reduce the burden on the economy, as the richest class in the country will bear the burden, the statement noted.

The PM’s latest directive is in line with austerity measures announced by the government two weeks ago to cope with the fuel crisis triggered by the Iran war

The measures so far have included a hike in petroleum products’ prices, a 50 per cent cut in fuel allowance for official vehicles and a four-day work week. It was also decided that 50pc of staff in the public sector would work from home; however, those providing essential services are exempt.

Last Thursday, the government had appealed to the public to adopt fuel conservation measures to “avert the risk of petroleum products’ supply getting affected in the coming days”.

A day later, the premier said that he had rejected recommendations for further increasing the prices of petroleum products. However, he said he had instructed relevant ministries to devise a mechanism to ensure that the “relief” was restricted to only the deserving and needy.