Pakistan’s rising fuel prices are expected to significantly inflate the country’s government vehicle fuel bill, pushing public expenditure on official transport sharply higher and adding new pressure on already stretched budgets.
Officials estimate that the fuel cost for government vehicles in Pakistan, currently ranging between Rs60 billion and Rs70 billion annually, could rise by around 25%.
This huge increase is surprising because the government previously told its officials to use 40% less fuel.
However, the numbers show that this plan didn’t work. Instead of saving, the bill grew because of two main reasons: the rising price of petrol worldwide and the continued use of large, luxury SUVs by high-ranking officials.
Thousands of Official Vehicles Driving the Fuel Bill
With thousands of official vehicles operating across federal and provincial departments, the impact of rising fuel prices is expected to be substantial.
Punjab alone operates nearly 30,000 government vehicles, costing roughly Rs20 billion annually in fuel. Federal departments run 12,000 to 15,000 vehicles, with yearly fuel spending estimated at about Rs9 billion.
Other provinces also carry high operational costs. Sindh maintains around 20,000 official vehicles, while Khyber-Pakhtunkhwa and Balochistan operate more than 12,000 and 8,000 vehicles, respectively, collectively consuming billions of rupees in fuel each year.
Cost Control Measures Under Consideration
Officials warn that unless fuel consumption and official transport usage are controlled, the government’s fuel expenditure could continue rising in the coming months.
Many experts are now calling for a “monetization” policy. This would mean giving officials a set amount of cash for travel instead of a “blank check” for free petrol.
This change would force everyone to be more careful with how much they drive, though no formal policy has yet been implemented.
Economists note that sustained increases in petroleum prices in Pakistan could not only raise government operating costs but also intensify inflationary pressures across the broader economy.
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