Pakistan Fuel Crisis Deepens as Gas, Power Supplies Face Pressure; Austerity Measures Tighten

Pakistan Fuel Crisis Deepens as Gas, Power Supplies Face Pressure; Austerity Measures Tighten

Pakistan faces a major fuel and gas crisis as oil prices rise amid the US-Iran war. Higher petrol and diesel prices, subsidy access issues and new austerity measures are adding to pressure nationwide.

Pakistan is facing a massive fuel and gas crisis amid the ongoing war in West Asia, with rising global oil prices threatening nationwide gas and power supplies, according to a PTI report. The war between the US and Iran has further intensified pressure on fuel availability and prices.

People across Pakistan are already under pressure from rising diesel and petrol prices. On Tuesday, the government increased the price of petrol by PKR 4.10 per litre and high-speed diesel by PKR 6.41 per litre, taking the prices to PKR 384.34 and PKR 415.83 per litre, respectively.

The government also introduced a fuel subsidy that came into effect on Wednesday to ease the sharp rise in fuel prices, Reuters reported. However, the measure has provided limited relief, with people struggling to access the subsidy.

Vehicle owners are required to register for the subsidy, but the programme is reportedly not working smoothly. Mohammad Musharraf, a resident of Karachi, said he had spent days trying to register his motorcycle and ID card number but struggled to complete the process.

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“First of all, you have to register your vehicle. Then you have to register your mobile phone. How can an illiterate person survive if the conditions are so difficult?”, he was quoted as saying by Reuters.

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As the crisis continues to put pressure on fuel supplies, Pakistan has been forced to introduce austerity measures aimed at curbing fuel consumption.

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One of the measures announced by the Pakistan government is a 50% cut in fuel allocations for government vehicles. Vehicles used by the armed forces, law enforcement agencies and essential services have been exempted from the reduction.

The government has also directed all markets to close by 9 pm. Marriage halls can operate until 10 pm, while restaurants can remain open until 11 pm. Drug stores and medical laboratories have been exempted from these restrictions.

The government has further announced a 5% reduction in non-employee-related expenditure and banned official foreign visits, as well as domestic travel for meetings. Officials have been asked to switch to virtual meetings instead.

Official dinners have also been prohibited, except those hosted for foreign visitors and delegations. The purchase of new government vehicles has also been banned as part of the measures to reduce government expenditure.

These restrictions are not being introduced for the first time. In April this year, Pakistan had also imposed several restrictions as part of measures to conserve fuel and reduce government expenditure.

With fuel prices rising, subsidy access proving difficult and the government introducing restrictions on consumption and expenditure, the measures reflect the growing pressure the fuel and gas crisis is placing on Pakistan's nationwide supplies and public finances.

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