Pakistan announces austerity measures amid rising fuel prices

Pakistan on Thursday (September 17, 2026) announced a raft of austerity measures to curb fuel consumption as escalating conflicts in West Asia led to an increase in global oil prices, threatening nationwide gas and power supplies.

The measures, approved by the Pakistan cabinet, will remain in effect for three months as the government seeks to contain fuel consumption and expenditure.

The development comes after the government on Tuesday (September 15, 2026) raised the price of petrol by PKR 4.10 per litre and high-speed diesel (HSD) by PKR 6.41 per litre, taking them to PKR 384.34 and PKR 415.83 per litre, respectively.

Oil prices have risen amid continuing tensions in West Asia and concerns over supplies following attacks on energy infrastructure in Saudi Arabia, including the temporary closure of its East-West oil pipeline after an aerial attack.