The federal government has reintroduced austerity measures to conserve fuel as renewed conflict in the Middle East puts pressure on energy supplies and shipping routes.
Under the new Cabinet Division notification, shops, markets, malls, bazaars and general stores must close by 9pm. Marriage halls and marquees will close by 10pm, while restaurants, cafés and food outlets can operate until 11pm.
Essential services including hospitals, pharmacies, fuel stations, bakeries, tandoors, milk shops, gyms, IT companies and call centres are exempt.
Official vehicle fuel allocations will be reduced by 50% for three months, although vehicles used for essential services, law enforcement and certain other government functions are exempt.
The government has also ordered a 5% monthly reduction in non employee related expenditure for the 2026–27 financial year. The purchase of new government vehicles and most durable goods has been prohibited, except where related to development projects.
The government says the restrictions are aimed at reducing fuel consumption and controlling public expenditure while uncertainty continues across the region.
The latest measures follow a similar austerity package introduced in March 2026, when fuel allowances for official vehicles were also cut by 50%. Most of those restrictions were lifted in June, apart from market timing measures.
The renewed action comes as disruptions around major energy and shipping routes, including the Strait of Hormuz and Bab al Mandab, create concerns over fuel availability and prices.
The federal government has reintroduced austerity measures to conserve fuel as renewed conflict in the Middle East puts pressure on energy supplies and shipping routes.
The federal government has reintroduced austerity measures to conserve fuel as renewed conflict in the Middle East puts pressure on energy supplies and shipping routes.
Under the new Cabinet Division notification, shops, markets, malls, bazaars and general stores must close by 9pm. Marriage halls and marquees will close by 10pm, while restaurants, cafés and food outlets can operate until 11pm.
Essential services including hospitals, pharmacies, fuel stations, bakeries, tandoors, milk shops, gyms, IT companies and call centres are exempt.
Official vehicle fuel allocations will be reduced by 50% for three months, although vehicles used for essential services, law enforcement and certain other government functions are exempt.
The government has also ordered a 5% monthly reduction in non employee related expenditure for the 2026–27 financial year. The purchase of new government vehicles and most durable goods has been prohibited, except where related to development projects.
The government says the restrictions are aimed at reducing fuel consumption and controlling public expenditure while uncertainty continues across the region.
The latest measures follow a similar austerity package introduced in March 2026, when fuel allowances for official vehicles were also cut by 50%. Most of those restrictions were lifted in June, apart from market timing measures.
The renewed action comes as disruptions around major energy and shipping routes, including the Strait of Hormuz and Bab al Mandab, create concerns over fuel availability and prices.
