Pakistan’s 'Smart Lockdown’ Plan: How It Aims To Cut Oil Use, Government Expenses

Prime Minister Shehbaz Sharif chaired a meeting to review proposals aimed at cutting transport-related fuel use, with several options under consideration for both government and private sectors.

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The government is weighing a lockdown similar to measures adopted during the peak of the US-Iran war.
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Pakistan is considering a partial lockdown and other measures to cut fuel use after a fresh hike in petrol prices amid rising tensions in West Asia.

Prime Minister Shehbaz Sharif chaired a meeting to review proposals aimed at cutting transport-related fuel use, with several options under consideration for both government and private sectors, according to PTI.

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The government raised petrol prices by Rs 4.10 a litre and high-speed diesel by Rs 6.41 a litre on Tuesday night, taking petrol to Rs 384.34 a litre and diesel to Rs 415.83 a litre, the news agency reported, citing an overnight notification by the Petroleum Division.

The hike was announced alongside official warnings over potential disruptions to oil supplies due to the deteriorating security situation around the Hormuz and Bab-el-Mandeb straits, with global crude prices also pushed up by attacks on Saudi energy infrastructure, including a strike on Riyadh's East-West pipeline.

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Energy Minister Awais Leghari and Climate Change Minister Musadik Malik, addressing a press conference, said the spike in international oil prices was testing the government's capacity to absorb such shocks, PTI said.

Malik also said that part of the burden was being cushioned through the PM's Fuel Relief Scheme, under which motorcyclists get five litres of subsidised petrol weekly and car owners 10 litres every 10 days, though he conceded the relief remained insufficient.

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Leghari said Pakistan had kept its power plants running despite fuel shortages by maximising use of domestic energy sources, which accounted for 72% of total electricity generation in August.

The government is weighing a smart lockdown similar to measures adopted during the peak of the US-Iran war, including a four-day work week and early market closures.

Information Minister Atta Tarar said austerity measures could return, though Malik denied any formal lockdown discussions had taken place.

Separately, a National Steering Committee on Fuel Subsidy, chaired by Deputy Prime Minister Ishaq Dar, has ordered that payments to fuel stations be processed within 24 hours, adding that the government also faces pressure from the Jamaat-i-Islami party, which has threatened nationwide protests next week if prices are not cut.

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