Government considers activating fuel conservation measures.

The federal government is considering reintroducing fuel conservation and austerity measures as early as this week or next in response to renewed tensions in the Middle East, which have increased pressure on global oil prices and Pakistan's foreign exchange reserves.

 

According to officials, the measures aim to preserve at least three months of import cover, with Prime Minister Shehbaz Sharif expected to discuss the proposal with the federal cabinet before a final decision is made.

 

Meanwhile, the government has clarified that petrol and high-speed diesel prices will now be revised only on working days, despite the recent shift to a daily pricing mechanism. Prices announced on Fridays will remain effective through Saturday, Sunday, and Monday, while fresh revisions will be issued from Monday to Friday.

 

Officials said the change only affects the frequency of price revisions and does not amount to fuel price deregulation. The Oil and Gas Regulatory Authority (Ogra) will continue calculating daily price adjustments and submit its recommendations to the Petroleum Division, which will issue the final notification.

 

Ogra will also begin publishing its price calculation details on its website to improve transparency.

 

The government will continue to control key pricing components, including the petroleum levy, climate levy, customs duty, deemed duty, dealer and oil marketing company margins, and freight equalisation adjustments. Taxes and margins currently account for around Rs110 per litre on petrol and Rs96 per litre on diesel.

 

Officials said broader fuel market deregulation remains under consideration but is not being implemented at this stage.

 

Authorities also indicated that the fuel conservation measures introduced earlier this year including a four-day workweek, reduced staff attendance, limits on official vehicle use, online meetings, restrictions on foreign travel, lower speed limits, and shorter business hours—remain available as policy options if external pressures intensify.

 

The government has reportedly decided in principle to prevent further erosion of foreign exchange reserves, which stood at $22.67 billion on July 10, equivalent to slightly more than three months of import cover.