ISLAMABAD: As part of austerity measures, Prime Minister Shehbaz Sharif on Monday banned the use of high-octane fuel in government vehicles, shortly after announcing Rs200 increase in the tax on high-octane fuel.

The decision came in the wake of government efforts to manage the economic impact of rising global oil prices triggered by US-Israel war on Iran.

According to an announcement by the Prime Minister’s Office (PMO), the prime minister directed relevant authorities to take action against government officials using high-octane in government 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.

Govt hopes to divert savings from the move to public relief measures

He stressed the need for maximum conservation of fuel in view of huge increase in the cost of oil due to US-Israel war on Iran and Tehran’s retaliatory attacks on US bases and other facilities in Gulf countries and 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.

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.

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

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

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

A day later, the prime minister 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 only to the deserving and needy.

Published in Dawn, March 24th, 2026