The Pakistani government is contemplating the revival of fuel conservation and austerity measures due to escalating tensions in the Middle East, which have heightened pressure on oil prices and foreign exchange reserves.

Key decisions include revising petrol and diesel prices only on working days, a shift from weekly to daily pricing adjustments, and retaining control over levies and duties.

OGRA will now publish detailed working mechanisms online, while the government will continue to regulate fuel requirements, margins, and customs duties.The move aims to preserve at least three months of import cover, with prices adjusted based on S&P Global Energy Platts data on a rolling basis.

Officials emphasized that deregulation is not imminent, and existing measures from March 2026, such as a four-day workweek and reduced vehicle usage, remain in place.The decision follows a drop in foreign exchange reserves to $22.67bn, slightly above three months of import cover.

While some adjustments to market operations are planned, the government remains cautious about fully liberalizing fuel pricing, citing potential challenges for local refineries and rural consumers.