Prime Minister Shehbaz Sharif of Pakistan has announced a ban on the use of high-octane fuel in government vehicles, effective immediately. This decision was made public by the Prime Minister’s Office on March 23, 2026.
The ban accompanies a substantial increase in the petroleum levy on high-octane fuel, which has been raised by Rs200 per litre, bringing the total levy to Rs305.37 per litre. Consequently, the price of High Octane Blending Component (HOBC) in Pakistan now stands at Rs535 per litre. The decision to increase the levy was made during a meeting chaired by the Prime Minister.
Under the new regulations, if a government department must use high-octane fuel, it must be done at personal expense, not at government cost. This measure is part of a broader austerity policy aimed at reducing public spending and ensuring the efficient use of national resources.
Previously, the government had implemented a 50% reduction in fuel for government vehicles and grounded 60% of its fleet. These actions have reportedly saved Rs9 billion per month, with the savings directed towards public relief and providing cheaper fuel options.
Prime Minister Shehbaz emphasized the importance of these austerity measures, particularly in light of ongoing Middle East tensions that have impacted global fuel supplies. He urged all federal departments to comply with the new regulations and warned of strict actions against violations. The government expects these measures to further alleviate the fuel crisis and promote responsible resource management.
Published in SouthAsianDesk, March 23, 2026
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