Pakistan may announce ‘work from home’ to cut fuel consumption amid Iran-US tensions

2026-03-05 - 05:33

ISLAMABAD – Pakistan is considering a proposal to enforce mandatory “work from home” policy in order to reduce fuel consumption as ongoing war involving Iran, Israel and the US has started affecting global trade and oil supplies. Reports said the proposal came under discussion during a meeting of the cabinet committee constituted by Prime Minister Shehbaz Sharif to Monitor Petrol Prices in the Wake of the Emerging Situation in the Region. The committee members under the chairmanship of Finance Minister Muhammad Aurangzeb have put their heads together to formulate a national action plan in view of prevailing security situation and its impact on oil prices and supplies. Pakistan’s Per Day Fuel Consumption Pakistan consumes approximately 832 million litres of petrol and 670 million litres of diesel each month, according to data from the Oil and Gas Regulatory Authority (Ogra) published by a local news channel last year. Pakistan’s energy security under threat amid Mideast tensions, Strait of Hormuz disruptions Pakistan’s energy security is under serious threat following heightened tensions in the Middle East and disruptions in the Strait of Hormuz, a critical maritime route for global oil supplies. The crisis began on February 28, 2026, when the United States and Israel launched Operation Epic Fury, targeting Iran’s military infrastructure, nuclear sites, and political leadership. Iranian Supreme Leader Ali Khamenei was reportedly killed in the initial strikes. In retaliation, Iran launched missile attacks on Israeli cities and US bases in the Gulf, hitting infrastructure in the United Arab Emirates, Qatar, and Bahrain. The Islamic Revolutionary Guard Corps warned that any vessel attempting to navigate the Strait of Hormuz would be targeted. By March 1, tanker traffic reportedly fell by 86 percent, and by March 2, the strait was declared formally closed. By March 3, no tankers broadcasting identification signals were detected in the waterway. The disruption poses a severe challenge for Pakistan, which imports around 300,000 barrels of crude oil per day, while domestic production stands at roughly 70,000 barrels. The Oil & Gas Development Company Limited (OGDCL) had previously warned that domestic reserves would be depleted by 2025 — a prediction now confirmed. Approximately 70 percent of Pakistan’s petrol consumption relies on imports, with refineries dependent on crude shipments by sea from Gulf suppliers. Pakistan’s Oil Reserves Unlike countries such as South Korea or the European Union, which maintain months of emergency fuel reserves, Pakistan currently holds only about 30 days of petrol in strategic stock. Operating under a $7 billion, 37-month International Monetary Fund Extended Fund Facility — its 24th IMF programme — the country faces limited flexibility to manage supply disruptions. The energy and security analysts warn that the combination of a blocked Strait of Hormuz, regional conflict and instability along Pakistan’s western border could lead to immediate fuel shortages. The experts have called for urgent development of strategic reserves and alternative import channels to safeguard the country’s energy supply.