Pakistan Cuts Official Fuel Use, Curbs Night Trading as Oil Prices Bite

Pakistan has announced a fresh set of fuel-saving measures as rising international oil prices strain the country's energy supply, transport costs and household budgets.

Under the plan, fuel allocations for government department vehicles will be halved for three months. Shops, markets, shopping centres and bazaars will be required to close by 21:00, while restaurants and cafes must shut by 23:00.

The steps follow a sharp increase in domestic fuel prices over the past fortnight. Petrol has become costlier by about 37 Pakistani rupees a litre, taking the retail price to nearly 400 rupees a litre.

The squeeze is already being felt on the ground. A local resident said a ride-hailing trip to school that used to cost between 400 and 500 rupees was now being quoted at 700 to 800 rupees. A taxi driver said most of a day's earnings now goes to the filling station, leaving him with only about 500 to 1,000 rupees in profit — or nothing at all.

Higher energy prices have pushed up transportation costs and added to household expenses. In Islamabad, much of the fruit, vegetables, fresh produce and other daily necessities are brought in from other parts of the country, so costlier fuel has raised logistics bills that are ultimately passed on to consumers, feeding into broader price increases for essential goods.