Prime Minister Shehbaz Sharif has banned the use of high-octane petrol in all government vehicles, effective immediately, as part of Pakistan’s ongoing push to cut public spending and enforce stricter fiscal control.
The decision, announced by the Prime Minister’s Office on March 23, 2026, prohibits federal ministries, departments, and attached offices from purchasing or using high-octane fuel at state expense. Officials who require it for any reason must cover the cost themselves.
This step follows closely on the heels of a separate order issued on March 22, where the government raised the petroleum levy on high-octane fuel—often used in luxury cars—by Rs200 per litre, pushing the total levy to Rs300 per litre and increasing the pump price significantly.
Why the ban matters High-octane fuel, also known as premium or HOBC (high-octane blending component), is more expensive than regular petrol and is typically suited for high-performance or luxury vehicles. Government officials have sometimes opted for it in official cars, which the prime minister views as unnecessary spending amid economic pressures.
In his directive, PM Shehbaz stressed the need for careful use of public money. He called for full compliance across all federal entities and warned that violations would face strict action. Authorities have been told to set up proper checks to ensure the rule is followed.
The move aligns with broader austerity efforts introduced in recent weeks, including cuts to fuel allowances for official vehicles, grounding a portion of the government fleet, and other measures to ease strain on the national budget.
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No immediate estimates were provided on potential savings from the ban, but similar restrictions aim to redirect funds toward public relief without raising costs for ordinary fuel users.
