Pakistan slashes official fuel use by HALF and shuts shops early as Gulf conflict sends prices soaring

From the Newshound archive · first published 19 September 2026.

Pakistan's government has cut fuel allocations for official vehicles by 50 per cent for three months and ordered shops and markets to close by 9pm, in a sweeping second austerity package this year driven by Gulf conflict disruption to LNG supplies and the Strait of Hormuz. Petrol has risen to Rs391.22 per litre and diesel to Rs421.45, with the government blaming international market volatility linked to US and Israeli strikes on Iran and ongoing Saudi-Houthi fighting threatening Red Sea trade routes. The Cabinet Division issued the notification for immediate implementation on Thursday, exempting armed forces, emergency services and hospitals. A new 100-rupee-per-litre fuel subsidy for motorcycle, rickshaw and small-car owners was also introduced on Wednesday to cushion consumers.

Foreign travel by officials is banned for three months alongside a complete freeze on government vehicle and durable goods purchases.

Pakistan shut schools for two weeks in March under a similar austerity drive — Thursday's measures signal the crisis has deepened since then.

Marriage halls must close by 10pm and weddings are restricted to a single dish, with restaurants allowed to trade until 11pm.