Pakistan weighs austerity steps again as West Asia oil shock lifts fuel prices

Islamabad,UPDATED: Sep 14, 2026 22:14 IST

Pakistan is considering bringing back austerity measures to cut fuel consumption as a fresh escalation in West Asia pushes up global oil prices, Information Minister Ataullah Tarar said on Monday. The move comes amid concern over the impact of higher petroleum prices on countries including Pakistan.

Tarar said Prime Minister Shehbaz Sharif had ordered consultations on restoring some of the steps introduced earlier this year. Those measures had been announced on March 9, at the height of the war between the US and Iran, and were withdrawn in June after the two sides began a peace process.

At a press briefing with Information Technology Minister Shaza Fatima Khawaja and Petroleum Minister Ali Pervaiz Malik, Tarar said the earlier steps were being reviewed in the current situation. "Austerity measures previously taken... are being reviewed to assess which of the previous measures need to be revived in the present situation," he said.

The earlier package included a 50 per cent cut in fuel allowances for official vehicles, salary cuts for lawmakers, and a partial work-from-home policy for public sector employees. Tarar said some measures, including reduced market timings, were still in place. He said the brief lull in hostilities did not last, and renewed attacks had again raised global oil prices.

The indication that austerity steps may return came as petrol prices rose to PKR 375.82 per litre and high-speed diesel to PKR 403.32 per litre. The government has already announced Rs 100 per litre relief for users of motorcycles, rickshaws, Qingqi three-wheelers and vehicles with engines up to 800cc. Tarar said the prime minister had directed Deputy Prime Minister and Foreign Minister Ishaq Dar to ensure transport fares did not go up after the relief scheme was launched.

In sum, Pakistan is reviewing whether to restore some of its earlier fuel-saving steps as renewed conflict in West Asia drives up oil prices, even as the government seeks to shield smaller vehicle users and prevent an increase in transport fares.

With PTI Inputs

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