Pakistan Halves Government Fuel Use, Curbs Market Hours as Oil Prices Surge
Pakistan's cabinet on Thursday, September 17, 2026, approved a three-month package of austerity measures aimed at curbing fuel consumption, as escalating conflict in West Asia pushed up global oil prices and raised concerns over nationwide gas and power supplies.
The fuel price revision came two days earlier. On Tuesday, September 15, 2026, the government raised the price of petrol by PKR 4.10 per litre and high-speed diesel (HSD) by PKR 6.41 per litre. Petrol now costs PKR 384.34 per litre, and HSD PKR 415.83 per litre.
International crude prices have risen amid continuing hostilities in West Asia and concerns over supply after attacks on energy infrastructure in Saudi Arabia. These included an aerial attack that led to the temporary closure of the kingdom's East-West oil pipeline.
The cabinet's decision follows earlier indications that the government was weighing a return to austerity measures in view of the regional hostilities. Pakistan meets a substantial share of its energy requirement through imports, which makes domestic fuel and power costs sensitive to movements in the global oil market.
Under the measures announced on Thursday, fuel allocations for government vehicles will be cut by 50 per cent. Vehicles used by the armed forces, law enforcement agencies and essential services are exempt from the reduction.
Business hours have been curtailed. Markets will be required to close by 9 p.m., marriage halls may operate until 10 p.m., and restaurants until 11 p.m. Drug stores and medical laboratories are exempt from these restrictions.
The government also announced a 5 per cent reduction in expenditure not related to employees. Official foreign visits have been banned, along with domestic travel for meetings, and officials have been asked to hold such meetings virtually instead.
Official dinners are prohibited, except those hosted for foreign visitors and delegations. The purchase of new government vehicles has also been banned.
Several of the restrictions are framed to shield essential services, including health and security, from the cutbacks. The burden of the savings falls mainly on official travel, entertainment and vehicle use, while drug stores and medical laboratories remain outside the trading-hour limits.
The restrictions announced so far concern government consumption and commercial timings. The package will remain in effect for three months, after which the government is expected to review it in light of oil prices and supply conditions.
