Prime Minister Shehbaz Sharif has ordered a complete ban on the use of high-octane fuel in government vehicles, officials said on Thursday, as part of broader measures to curb state expenditures and promote austerity.

The decision, effective immediately, stipulates that any unavoidable use of high-octane fuel in government vehicles must be paid for personally by the responsible officer, with government funds no longer covering the cost.

The prime minister has instructed all federal departments, authorities and subordinate institutions to ensure strict compliance, warning that violations will result in disciplinary action.

This step follows earlier measures to reduce fuel consumption by 50% and to ground 60% of government vehicles, aimed at cutting unnecessary expenses and better utilising public resources, according to the Prime Minister’s Office (PMO).

The move comes shortly after the government raised the levy on high-octane fuel by Rs200 per litre, taking the total to Rs300, a step intended to shift the financial burden to wealthier consumers while shielding the general public.

The higher levy applies only to high-octane fuel typically used in luxury vehicles, with prices of petrol, diesel and other fuels for ordinary users unchanged.

Authorities said the levy hike would not affect public transport fares or air travel costs, and is expected to generate around Rs9 billion per month for targeted public relief.

Finance Minister Muhammad Aurangzeb said the government has absorbed Rs69 billion on petroleum products while ensuring uninterrupted supply and implementing demand management and energy conservation measures.

He cautioned that ongoing regional tensions could affect energy infrastructure, highlighting the need for coordinated efforts to manage the sector.

The latest steps underline the government’s focus on fiscal discipline and reducing luxury fuel consumption among high-income segments, while mitigating the impact on ordinary citizens.