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# Pakistan Slashes Government Fuel Use as Bangladesh Struggles With Blackouts
- URL: https://www.theglobalvoice.com/pakistan-slashes-government-fuel-use-as-bangladesh-struggles-with-blackouts/
- Published: 2026-09-17T15:58:41.000Z
- Updated: 2026-09-17T15:58:41.000Z
- Description: Pakistan has revived emergency fuel cuts and spending restrictions as the Gulf war drives up oil prices, while Bangladesh is battling LNG shortages, blackouts and factory disruption. The crisis is exposing how deeply both economies depend on imported energy.
- Author: TGV Desk
- Tags: South-Asia, The Day So Far, markets, middle-east, Live Wire, has-audio

Pakistan has revived emergency austerity measures to conserve fuel as the widening Gulf conflict pushes oil and gas prices higher, while Bangladesh is facing renewed pressure on its own energy-saving programme as expensive LNG, blackouts and gas shortages hit households and industry.

Prime Minister Shehbaz Sharif approved a nationwide austerity and fuel-conservation campaign on September 17 after global petroleum prices surged again. The government ordered a 50% cut in fuel allocations for official vehicles for three months, a ban on new government vehicle purchases, limits on foreign travel and official functions, and a 5% reduction in non-essential government spending. Markets are also being required to close earlier, with pharmacies and other essential services exempt.

The measures revive restrictions first introduced earlier this year when the [US-Israel war with Iran](https://en.wikipedia.org/wiki/2026%5FIran%5Fwar?ref=theglobalvoice.com) disrupted energy supplies and sent oil prices sharply higher. Islamabad has also launched a fuel subsidy for motorcycles, rickshaws and cars with engines up to 800cc, offering support of 100 Pakistani rupees per litre to lower- and middle-income consumers. Officials say the government itself should absorb the first round of cuts before asking households to reduce consumption.

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Bangladesh is facing a different but equally serious problem. The country depends heavily on imported liquefied natural gas, and more than 40% of its electricity is linked to imported LNG. Qatar’s suspension of exports following disruption in the Strait of Hormuz forced Dhaka into the much more expensive spot market, where prices have more than doubled. Power Minister Iqbal Hasan Mahmud said the resulting costs are already hurting industrial growth and forcing the government to spend more on subsidies at the expense of development projects.

Bangladesh introduced emergency conservation measures in April, cutting office hours, shortening banking schedules and ordering shopping centres to close by 6 p.m. The restrictions were designed to reduce electricity and fuel consumption as the Middle East conflict disrupted supply chains. Those measures remain an important part of the government’s response, but the renewed surge in energy prices is putting the system under fresh strain.

The impact is increasingly visible in daily life and industry. Sources reported that households in Dhaka are dealing with intermittent gas supply and power outages, while factories, particularly in the garment sector, have been forced to slow or halt production because of gas shortages. Bangladesh is seeking additional LNG from Indonesia, Australia and China while accelerating plans for solar power and other alternatives.

The pressure on both countries reflects a much larger regional energy shock. Asian spot LNG prices have climbed to nearly $30 per million British thermal units, while Brent crude remains above $100 a barrel despite easing slightly this week. Supply disruptions through the Strait of Hormuz, attacks on Gulf infrastructure and instability around the Red Sea have made imported energy far more expensive across Asia.

For Pakistan and Bangladesh, the crisis is exposing the same structural weakness: both remain heavily dependent on imported fossil fuels and have limited room to absorb sudden price shocks without either increasing subsidies or cutting consumption.

The austerity measures may help stretch supplies and contain government spending, but they also underline how a war thousands of kilometres away is now reshaping working hours, transport, industry and household life across South Asia.