Pakistan Faces Fuel Crisis Amid Ongoing Middle East Conflict

The ongoing conflict in the Middle East has led to a significant fuel crisis in Pakistan, with petrol prices soaring and public protests erupting in response. The government has implemented emergency measures, including price rollbacks and free public transport, to alleviate the burden on citizens. However, with a large portion of the population living in poverty, the situation remains dire. As the government navigates these challenges, the coming weeks will be critical in addressing public frustration and ensuring energy needs are met.

By Narendra Chaudhary Apr 4, 2026, 11:29 IST

Impact of the Middle East Conflict on Pakistan

The ongoing conflict in the Middle East has now extended beyond a month, significantly affecting global markets. In particular, Pakistan, which relies on the Strait of Hormuz for approximately 85% of its oil imports, is facing severe challenges. The government has been compelled to implement emergency measures to address rising public discontent.

Since the onset of the conflict, petrol prices in Pakistan have surged multiple times. Recently, the government announced a staggering overnight increase of 42.7%, pushing the price to Rs 485 per litre. This drastic hike led to immediate protests and long lines at fuel stations. In response to the widespread backlash, Prime Minister Shehbaz Sharif reverted the price to Rs 378 per litre on the same day. “This reduction will remain in effect for at least one month,” Sharif stated during a televised address. “I assure you that I will not rest until your lives return to normal.”

Government Relief Initiatives

To alleviate the financial strain on citizens, the government has introduced several rapid relief measures:

Free Public Transport: Residents in Islamabad and Punjab will benefit from 30 days of free public transport via state-operated buses. Additionally, Punjab is providing subsidies for truck and bus operators.

Interior Minister Mohsin Naqvi indicated that this initiative will cost the government around Rs 350 million.

In Karachi, the Sindh government has announced subsidies aimed at motorcyclists and small-scale farmers.

Chief Minister Maryam Nawaz Sharif has urged transport providers not to transfer additional costs to passengers.

For diesel, the government raised the price by Rs 184.49 per litre (from Rs 335.86 to Rs 520.35) but eliminated a levy to ease the burden.

Long-Term Fuel-Saving Strategies

Pakistan is also implementing longer-term strategies to curb fuel consumption, which include:

Introducing a four-day workweek for many government offices.

Extending school holidays.

Transitioning to online classes in various regions.

Public Outcry and Economic Challenges

Protests erupted in Lahore on Friday, with demonstrators accusing the government of unfairly burdening the populace. Protester Naveed Ahmed remarked, “The government has dropped a ‘petrol bomb’ on its citizens overnight. Our nation cannot withstand this right now.” Another protester, Hafiz Abdul Rauf, suggested that the price increase was influenced not only by the conflict but also by pressures from the International Monetary Fund (IMF). “For God’s sake, show some compassion for the people,” he urged.

With around 25% of Pakistan’s 240 million citizens living in poverty, the fuel price surge poses an even greater challenge. The country’s reliance on the Strait of Hormuz has been severely impacted since the US-Israel conflict with Iran began on February 28. In a similar vein, Bangladesh has raised LPG and CNG prices by 29% amid the ongoing crisis.

This week, the IMF cautioned that nations like Pakistan are not only facing elevated energy costs but also supply chain disruptions. On March 28, the IMF reached a preliminary agreement for a $1.2 billion support package with Pakistan. The upcoming weeks will be crucial as the government attempts to balance its energy requirements with rising public dissatisfaction.