Pakistan Implements Austerity Measures as Fuel Prices Surge

Pakistan introduces fuel rationing and curbs to tackle rising oil costs amid regional tensions. Details on new restrictions and subsidies.

Editorial Desk

September 18, 2026 One Min Read

POLICY WIRE — Islamabad, Pakistan — Pakistan’s government has introduced strict austerity measures to address soaring fuel costs, driven by heightened regional conflicts and global oil price fluctuations.

The new policies, approved by the cabinet, will remain in place for three months and include cuts to fuel use across public sectors, with a focus on reducing consumption and managing limited energy supplies.

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Earlier this week, the government increased petrol and diesel prices by PKR 4.10 and PKR 6.41 per litre, respectively, pushing them to PKR 384.34 and PKR 415.83 per litre. The measures also include restrictions on business hours, travel bans for officials, and a halt on non-essential spending.

Reporting by Policy-Wire (PW)

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