Government Revives Fuel Conservation Measures Amid US-Iran Crisis

In a scenario where geopolitical tensions are intensifying due to the US-Israel conflict with Iran, Pakistan’s government has reactivated several measures implemented during the pandemic era—excluding health-related safeguards—to conserve fuel and manage market stability. These actions underscore the gravity of the current regional crisis.

With the war in its second week, consuming resources in the Gulf region and disrupting shipping through the Strait of Hormuz, Islamabad is positioning itself to contend with potential energy shortages and economic repercussions from an impending rise in oil prices. Pakistan’s heavy reliance on imported energy makes it particularly vulnerable to external shocks, as nearly all its petroleum needs are met via imports, a significant portion of which traverse one of the world’s most crucial maritime lanes.

The Strait of Hormuz, which handles approximately a fifth of global oil supplies, is under pressure from disruptions in shipping. These bottlenecks not only impede fuel availability but also inflate prices on international energy markets. For Pakistan, already facing a precarious external account, even a modest escalation in freight costs and insurance premiums would pose significant financial strain. Limited shipping availability, compounded by increased competition for cargoes in Asian markets, could complicate efforts to secure necessary supplies.

In response to these challenges, the government has decided to reintroduce demand-management strategies from its past pandemic-era playbook—such as encouraging work-from-home arrangements, distance learning, and carpooling—to conserve fuel and foreign exchange resources. These measures are deemed crucial given that the conflict seems unlikely to abate soon. While initially seen as drastic by some, these steps reflect a pragmatic recognition that early restraint can minimize disruptive interventions.

Additionally, the government has shifted its petroleum price revisions from fortnightly updates to weekly ones, aiming to more swiftly pass through global price fluctuations and logistical challenges. Although this could lead to more frequent pump prices for consumers, it offers a critical alternative to large price distortions, which could destabilize supply chains and deter imports by oil marketing companies.

Simultaneously, strict enforcement against hoarding and illegal storage is vital to prevent artificial shortages from materializing. This balance between immediate conservation measures and long-term structural reforms remains crucial as the situation underscores Pakistan’s overwhelming reliance on imported fossil fuels. Each regional crisis compounds domestic instability due to our limited energy buffers and strategic reserves.

The present context highlights a need for deeper structural reform: diversifying the country’s energy mix, expanding domestic resources, and building larger strategic fuel stocks. Until these measures are implemented, every external shock will exacerbate economic precarity and put ordinary people in increasingly vulnerable positions.

Published on March 7th, 2026 in Dawn.