In a move aimed at reducing expenditures and promoting austerity, Pakistan government on Monday announced an immediate ban on the use of high-octane fuel in all official vehicles.
The decision came a day after increasing petroleum levy on high-octaine fuel by Rs200 per litre.
The new directive strictly prohibits government departments from using high-octane fuel at public expense. “If the use of high-octane fuel becomes unavoidable for any government vehicle, the cost must be borne personally by the user rather than the state,” the Prime Minister Office (PMO) said in a statement released in Islamabad.
The decision was part of the broader cost-cutting measures introduced by the government in the recent past, the statement added.
Earlier, the government also announced a 50% reduction in fuel usage for official vehicles, and grounded nearly 60% of the government fleet.
All federal departments, authorities, and subordinate institutions were directed to ensure immediate and full compliance with the new policy.
The Prime Minister has directed relevant officials to establish an effective monitoring system for this decision and to take strict action in case of any violations.
On Sunday, Prime Minister Shehbaz Sharif had decided to increase the existing levy on high octane fuel used in luxury vehicles by the wealthiest class by an additional Rs200 per litre, raising it from Rs100 per litre to Rs300 per litre.
This important decision regarding high-octane fuel used in luxury vehicles of the wealthiest class, was taken in a video-link meeting presided over by the prime minister. He noted that the levy on high-octane fuel used in the most expensive vehicles should be increased.
The levy on high-octane fuel used in expensive vehicles will now be Rs300 per litre.
This decision will help the government to save Rs9 billion per month, and as directed by Prime Minister this saving will be passed on to the public as relief.
This decision aimed to reduce the burden on the economy and the wealthiest segment of the country will bear the cost.
Fuel prices for ordinary vehicles used by lower and middle classes have not been increased, only the price of high-octane fuel used in luxury vehicles has been increased.
