Pakistan Raises Fuel Costs by 200% Amid Strait of Hormuz Crisis Pakistan’s government approved a significant increase in the levy on high-octane fuel used by luxury vehicles, raising the per-litre charge from Pakistani Rupees (PKR) 100 to PKR 300. The decision, announced by Prime Minister Shehbaz Sharif during a high-level meeting, was part of efforts to address rising energy costs amid global market pressures. The move was taken after reviewing fuel pricing and economic relief measures, with senior officials including the Finance Minister, Petroleum Minister, and others present at the meeting. The price hike specifically targets high-octane fuel, which is used in premium vehicles, and will not directly affect public transport fares or air travel costs, according to reports from ARY News. This clarification aims to mitigate public backlash, as the increase comes amid heightened economic strain. Earlier on March 6, the federal government had already raised petrol and diesel prices by PKR 55 per litre, citing surging global oil prices driven by geopolitical tensions, including the US-Israel conflict with Iran. The latest adjustments have led to petrol prices rising to PKR 321.17 per litre from PKR 266.17, while diesel prices climbed to PKR 335.86 per litre from PKR 280.86. These changes were confirmed by Petroleum Minister Ali Pervaiz Malik during a press conference alongside Finance Minister Muhammad Aurangzeb and Deputy Prime Minister Ishaq Dar. The fuel price surge has also impacted the aviation sector. Pakistani airlines announced fare hikes on March 10, with domestic ticket prices increasing by PKR 2,800 to PKR 5,000 for flights between major cities like Karachi, Lahore, and Islamabad. International travel fares saw even steeper increases, with prices rising by PKR 10,000 to PKR 28,000.#pakistan #strait_of_hormuz #shehbaz_sharif #ary_news #ali_pervaiz_malik
Pakistan Fuel Crisis: Middle East Heat Reaches Pakistan, PM Announces Fuel-Saving Measures The ongoing Middle East crisis has intensified global oil supply disruptions, with Pakistan now facing severe fuel shortages. In response, Prime Minister Shehbaz Sharif has announced a series of measures aimed at conserving fuel, including salary cuts, work-from-home policies, and reduced government spending. The measures were discussed during a meeting with federal and provincial authorities, with Sharif stating that “difficult decisions” were necessary due to the escalating situation. Key steps include a 50% reduction in fuel allowances for official vehicles for the next two months, with operational vehicles like ambulances and public buses exempt. Additionally, 60% of government vehicles across federal and provincial departments will be grounded during this period. Federal and provincial cabinet members will also forgo their salaries and allowances for two months, while lawmakers will see a 25% reduction in pay. Higher-ranking officials earning over Rs300,000 will surrender two days’ salary, which will be allocated to public welfare. However, health and education sector officials are exempt from this cut. The government will also cut non-employee-related expenditures by 20% in the fourth quarter, banning purchases of vehicles, furniture, air conditioners, and other items until June 2026. Foreign travel by ministers and officials is restricted, with exceptions only for “essential” trips. Government offices will shift to teleconferencing and online meetings to save fuel, while official dinners and Iftar parties are banned. Seminars and conferences will be held at government premises instead of hotels. Public sector offices will operate four days a week, excluding the banking sector.#pakistan #iran_war #middle_east_crisis #international_monetary_fund #shehbaz_sharif
Pakistan Orders Austerity Measures Amid Oil Crisis Linked to Iran War Pakistan has implemented strict austerity and fuel conservation measures in response to a disruption in oil and gas supplies caused by the U.S.-Israel conflict in Iran and broader Middle East tensions. Prime Minister Shehbaz Sharif announced the measures during a televised address, warning that disruptions in maritime traffic through the Strait of Hormuz—a critical oil transit route—have placed the country’s economy at risk. The measures include a four-day workweek for government employees, a two-week school closure, and salary cuts for lawmakers and officials. Schools across the country will remain closed from March 16 to the end of the month, though scheduled examinations will proceed. Universities and higher education institutions are shifting to online classes to conserve fuel. Federal and provincial cabinet members are instructed to forgo their salaries and allowances for two months, while legislators face a 25% reduction in pay. Government officials are restricted to essential travel abroad and must use economy class for trips. All in-person meetings in federal and provincial governments are now conducted online, and fuel allowances for offices have been reduced. Public gatherings are also limited, with weddings and parties capped at 200 guests and restricted to one main dish. The measures aim to curb energy consumption amid a severe fuel shortage. Pakistan’s reliance on imported energy has intensified the crisis, as the country depends on oil imports for over 80% of its needs. Between July 2025 and February 2026, oil imports totaled $10.71 billion, compared to $15 billion in 2024. The recent energy crisis has triggered the highest fuel price surge in Pakistan’s history, with petrol costing $1.15 per litre and diesel at $1.#pakistan #strait_of_hormuz #qatar #shehbaz_sharif #amer_zafar_durrani
