Pakistan Orders 50% Fuel Cut For Govt Vehicles As Middle East Crisis Deepens

Pakistan on Thursday announced a fresh austerity drive, cutting fuel allocations for government vehicles by 50% for three months as renewed Middle East hostilities disrupt energy supplies and push petroleum prices higher in the import-dependent country.

According to a Cabinet Division notification, the fuel cut will apply to official vehicles, with operational vehicles of the armed forces, law enforcement agencies, civil armed forces, essential services and the Federal Board of Revenue exempted. Administrative and non-operational vehicles of these organisations will remain subject to the reduction.

Spending and travel restrictions

The government also banned the purchase of official vehicles and durable goods, except information technology equipment, and ordered a 5% reduction in non-employee-related expenditure throughout the 2026-27 financial year.

Foreign travel by government officials has been completely prohibited for three months, with limited exceptions. Officials undertaking unavoidable foreign trips will have to travel economy class.

The measures also discourage physical meetings in favour of teleconferencing and prohibit government-funded seminars, conferences and training programmes unless unavoidable.

Fuel prices rise again

Pakistan's latest move comes amid another surge in fuel prices. Petrol rose by Rs6.88 to Rs391.22 per litre on Thursday, while high-speed diesel increased by Rs5.62 to Rs421.45, marking the eighth consecutive hike.

The government had earlier approved a Rs75-billion fuel subsidy for lower-income motorists to cushion the impact of rising prices. The latest austerity measures revive restrictions introduced during an earlier energy crisis and subsequently withdrawn after global oil prices eased.