Pakistan Faces Severe Petrol Crisis Amid Hormuz Disruption – Government Down to Limited Options

Islamabad, March 18, 2026 — Escalating conflict between Iran and the US-Israel alliance has effectively disrupted tanker traffic through the Strait of Hormuz, threatening Pakistan’s fuel supplies. The country imports over 80% of its oil needs, with the majority routed via Hormuz to ports in Karachi and Port Qasim. Current stocks of petrol and diesel are sufficient for only about 25-26 days of normal consumption, while global oil prices have surged sharply.
In response, the government has implemented emergency austerity measures announced by Prime Minister Shehbaz Sharif, including:
Record fuel price hikes (petrol ~PKR 321/litre, diesel ~PKR 336/litre – up over 20% in recent weeks).
Four-day workweek for government offices.
Removal of 60% of official vehicles from roads.
Two-week closure of schools and educational institutions.
Analysts indicate the government is left with essentially two main options to manage the crisis:
Sharp price increases aligned with global markets to suppress demand, though this risks fueling higher inflation.
Fuel rationing via QR code system, similar to Sri Lanka’s recent implementation, limiting weekly purchases per vehicle (e.g., 15-20 litres) to prevent hoarding and ensure equitable distribution.
Economist Dr. Abid Suleri (SDPI) warned that rationing may become inevitable to keep schools and offices operational. Energy expert Khalid Walid urged immediate focus on solar and alternative energy sources.
Neighboring countries are adopting similar measures:
Bangladesh has closed universities and imposed fuel sale limits.
Nepal has started rationing cooking gas amid panic buying.
Myanmar and others have introduced sales caps and rationing to avoid economic paralysis.
Efforts are underway to reroute imports (e.g., via Red Sea from Saudi Arabia), but prolonged disruption could push monthly oil import bills to $3.5–4.5 billion, drain reserves, and spike inflation to 17%. Citizens are urged to reduce non-essential travel and avoid panic buying as the situation remains fluid.