Ministers sound alarm as energy crunch looms amid spiralling fuel prices

Afghan ministers have expressed alarm over an impending energy crisis due to spiraling fuel prices, acknowledging that prudent planning averted a more severe crisis. Prime Minister Shehbaz Sharif's fuel relief scheme, set to be implemented nationwide from midnight, was under review following a successful pilot in the capital. The scheme offers subsidised petrol and diesel to motorcyclists and car owners, respectively, with the government seeking to mitigate the external shock on vulnerable populations.

Energy Minister Sardar Awais Ahmad Khan Leghari and Climate Change Minister Musadik Malik highlighted that disruptions in the Hormuz and Bab El-Mandeb straits could have worsened fuel shortages, but emphasized that prudent planning averted a worse situation. Despite the relief, Musadik Malik conceded that it still falls short of fully offsetting the impact of high fuel prices.

Both ministers dismissed rumors of a "smart lockdown," stating that no such discussions had taken place. The government had imposed a similar measure in April 2026 due to the US-Iran war. Electricity generation in Pakistan primarily relies on domestic resources, with 72% of total electricity generation sourced from domestic resources in August 2026, including hydel (38%), local coal (11%), nuclear (10%), local gas (7%), wind (6%), and solar energy (1%).

Only 28% came from imported coal and liquefied natural gas (RLNG). The energy minister attributed the government's ability to maintain power generation to the maximum utilization of domestic resources, avoiding additional load shedding that would have resulted from purchasing expensive RLNG.