The Pakistan government has imposed an immediate ban on the use of high-octane fuel in all official vehicles, as announced by the Prime Minister’s Office (PMO) on March 23, 2026. This move is part of ongoing austerity efforts to curb public spending amid rising global oil prices and regional energy disruptions.
Austerity Push Targets Premium Fuel Consumption
Prime Minister Shehbaz Sharif directed the ban, prohibiting government departments, authorities, and institutions from using high-octane fuel (often referred to as HOBC or high-octane blending component) at state expense.
The directive follows closely on the heels of a Rs200 per litre increase in the petroleum levy on high-octane fuel, raising it significantly and pushing retail prices higher for luxury vehicles. Officials emphasized that this targets unnecessary premium fuel use, typically associated with high-performance or luxury cars not essential for official duties.
Personal Cost for Exceptions and Broader Compliance
If high-octane fuel becomes unavoidable for any government vehicle, the cost must be borne personally by the user, not the state. The PMO stressed strict compliance across all federal entities, with directions to take action against violations. This builds on earlier measures, including a 50% reduction in fuel allowances for official vehicles and grounding nearly 60% of the government fleet.
No specific savings figures were quoted for the ban, but it aligns with efforts to redirect resources toward public relief and manage fiscal pressures in a challenging economic environment.