Pakistan is considering reviving austerity measures to curb fuel consumption amid a fresh escalation of hostilities in West Asia, Information Minister Ataullah Tarar said on Monday (September 14, 2026).

The government had announced a raft of measures on March 9 to reduce the impact of rising petroleum prices at the peak of the war between the U.S. and Iran. These included a 50% cut in fuel allowances for official vehicles, salary cuts for lawmakers, and a partial work-from-home policy for public sector employees.

The measures were withdrawn in June after the two sides began a peace process.

However, a brief lull in hostilities failed to hold, with renewed attacks pushing up global oil prices and raising concerns over their impact on several countries, including Pakistan.

Addressing a press briefing alongside Information Technology Minister Shaza Fatima Khawaja and Petroleum Minister Ali Pervaiz Malik, Mr. Tarar said Prime Minister Shehbaz Sharif had directed consultations on reviving the austerity measures.

“Austerity measures previously taken… are being reviewed to assess which of the previous measures need to be revived in the present situation,” he said.

Some measures, including reduced market timings, remain in place, Mr. Tarar said.

The indication of a possible revival of austerity measures came as petrol prices rose to PKR 375.82 per litre and high-speed diesel (HSD) to PKR 403.32 per litre.

The government has already announced a Rs 100 per litre relief for users of motorcycles, rickshaws, Qingqi three-wheelers and vehicles with engines up to 800cc.

Mr. Tarar said the Prime Minister had directed Deputy Prime Minister and Foreign Minister Ishaq Dar to ensure that transport fares did not increase following the launch of the relief scheme.

In the first post-Iran war economic shock, Pakistan government in an overnight decision has increased petrol and high-speed diesel prices by PKR 55 per litre each, the highest-ever hike.

Addressing a press conference just before midnight, Petroleum Minister Ali Pervaiz Malik, Deputy Prime Minister and Foreign Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb announced the hike with the consolation that the country has sufficient petroleum reserves.

As a result of the hike, the ex-depot price of high-speed diesel was fixed at PKR 335.86 per litre for the coming week, up by about 20% from PKR 280.86 per litre.

Likewise, the ex-depot price of petrol was revised to PKR 321.17 per litre from PKR 266.17 per litre, reflecting an increase of around 17%.

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Mr. Malik said at the presser that the conflict in West Asia created uncertainty in the entire region, offsetting global energy supply and prices, the Dawn newspaper reported.

“The fire that started in a neighbouring country has spread across the entire region. We do not know how long this crisis will continue, and there is no clear timeline for its end,” he said.

He added that Pakistan was dependent on oil supplies passing through the Strait of Hormuz, which were affected by the ongoing conflict.

The minister said that the government was monitoring the supply side and warned of strict action against hoarding and artificial shortages of petroleum products in the country.

He also shared that two Pakistani oil vessels were coming through alternative routes.

Petrol prices to be reviewed weekly

Mr. Malik said the government would now review petroleum prices on a weekly basis in view of the volatile international market.

“As soon as the situation improves internationally, we will reduce prices at the same speed,” he added.

Earlier, Mr. Dar said global oil prices had increased by 50 to 70% due to the crisis. “In many countries, prices increase automatically, but we tried to pass on the minimum possible impact to consumers and find a balanced solution,” he said.

Finance Minister Aurangzeb reiterated that Pakistan currently has “comfortable” petroleum reserves, and that the country’s economic situation remains stable. However, he stressed that policymakers would remain vigilant.

The Dawn also reported that the measure came after the government on Friday (March 6) shelved a proposed national action plan that envisaged work from home and distance learning measures in response to a potential fuel crisis, and instead decided to keep normal activities unchanged for at least a week.

Long queues

Ahead of the price hike, long queues formed at petrol stations across several cities as motorists rushed to fill their tanks to avail cheaper fuels.

Earlier, the decision to defer a proposed national action plan, including work from home and distance learning measures, was taken at a high-level meeting on petroleum product reserves, chaired by Prime Minister Shehbaz Sharif.

“The meeting decided that the plan for work from home and distance learning should be deferred for at least a week as current petroleum reserves are adequate to meet the country’s needs,” a source privy to the meeting told Dawn.

A day earlier, the government had in principle decided to begin weekly petroleum price revisions from March 8 and to implement fuel conservation measures amid possible supply disruptions due to the West Asia crisis.