The federal government is considering reintroducing fuel conservation and austerity measures in response to rising global oil prices and growing pressure on Pakistan’s foreign exchange reserves following renewed tensions in the Middle East.
Prime Minister Shehbaz Sharif has discussed the proposed measures, which are expected to be presented to the federal cabinet for approval in the coming days. The government aims to maintain foreign exchange reserves at a level sufficient to cover at least three months of imports.
The proposed measures include restoring a four-day workweek, reducing staff attendance at government offices by 50 percent, limiting the use of official vehicles, increasing virtual meetings, restricting official foreign travel, cutting non-essential government spending, introducing highway speed limits, and reducing other public sector expenditures.
These fuel-saving measures were previously introduced in March due to disruptions in global oil markets and later withdrawn in June after market conditions improved.
The government also clarified that the recently introduced daily petroleum pricing mechanism does not mean fuel prices have been deregulated. Under the new system, petrol and diesel prices will only be revised on working days (Monday to Friday). Prices announced on Friday will remain effective through the weekend and Monday.
The Oil and Gas Regulatory Authority (OGRA) will continue calculating fuel prices daily and submit recommendations to the Petroleum Division, which will issue the official notifications. OGRA will also publish detailed pricing calculations on its website to improve transparency.
Despite more frequent price updates, the government will continue regulating key elements of fuel pricing, including the petroleum levy, climate support levy, customs duties, dealer and oil marketing company margins, freight equalization, and overall fuel supply management.
Officials emphasized that Pakistan has not shifted to a deregulated fuel market, where oil companies independently set retail prices.
The government is also exploring long-term measures, including investment in oil storage infrastructure along Pakistan’s coastline. However, its immediate focus remains protecting the country’s foreign exchange reserves, which declined to approximately $22.67 billion by July 10, down from nearly $24 billion at the beginning of the month.
