Ministers sound alarm as energy crunch looms amid spiralling fuel prices

Federal cabinet members raised alarms over an impending energy crisis in Pakistan due to surging fuel prices. Prime Minister Shahbaz Sharif's fuel relief scheme is set to be rolled out nationwide from midnight, with the government maintaining that prudent planning averted a more severe crisis. Energy Minister Sardar Awais Ahmad Khan Leghari and Climate Change Minister Musadik Malik highlighted how Hormuz and Bab El-Mandeb strait disruptions could have worsened fuel shortages, while the National Steering Committee on Fuel Subsidy directed provinces to expedite relief distribution.

The scheme provides Rs100 per litre of fuel, with motorcyclists receiving five litres weekly and car owners 10 litres every 10 days. Despite the relief, ministers acknowledged that it was the maximum the economy could currently absorb. The ministers denied 'smart lockdown' rumors, stating no such discussions had occurred. Pakistan relied on domestic resources for power generation, with 72% sourced from domestic resources as of August 2026, preventing an additional hour of load shedding during high fuel prices.