PM Shehbaz bans high-octane fuel in govt vehicles as petroleum levy jumps to Rs305

Prime Minister Shehbaz Sharif has banned the use of high-octane fuel in all government vehicles, with the decision taking effect immediately, the Prime Minister’s Office announced on Monday.

The ban comes with the decision to increase the petroleum levy on high-octane fuel.

Under a notification issued for this purpose, the levy on high-octane has been raised by Rs200 per litre to Rs305.37 per litre, pushing the new price of High Octane Blending Component (HOBC) in the country to Rs535. The decision to increase the levy from Rs100 to Rs300 per litre was taken in a meeting chaired by the prime minister.

Under the new ban, if the use of high-octane fuel in any government department’s vehicle is unavoidable, the user may do so at their own personal expense. A strict ban has been imposed on its use at government expense.

Read: Govt increases Rs200 levy on high-octane fuel for luxury cars to ease crisis

The purpose of the decision, according to the Prime Minister’s Office, is to ensure the efficient and responsible use of national resources.

PM Shehbaz directed all federal departments, authorities, and subordinate institutions to ensure immediate and full implementation of the ban. He also directed the relevant authorities to devise an effective system to monitor compliance and to take strict action in case of violations.

Read More: PM Shehbaz says rejected advice to further raise fuel prices, govt to absorb burden

Earlier, 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 utilised to provide relief to the public and to supply cheaper fuel.

The prime minister said that strict implementation of the austerity policy and the reduction of unnecessary expenditures are the need of the hour, adding that this step will reduce government spending and enable better use of public resources.

The government on Sunday approved a significant Rs200 per litre increase in the fuel levy on high-octane used in luxury vehicles, in a move to cope with the fuel crisis amid Middle East tensions.

Also Read: Govt urges public to adopt further austerity measures, cooperate to conserve energy amid Mideast fuel crisis

According to a statement issued by the PMO, Shehbaz, chairing a video-link meeting, announced that the levy of Rs100 per litre on high-octane fuel would be raised by an additional Rs200, bringing the total levy to Rs300 per litre.

The government expects the measure to save Rs9 billion per month, with the savings earmarked to provide relief to the general public.

The statement further clarified that the increase applies only to high-octane fuel used in luxury cars. Petrol prices for ordinary vehicles, as well as fares for public transport and air travel, will remain unchanged.