New Delhi: As the war in West Asia intensifies with no end in sight after Iran rejected a ceasefire proposal by intermediaries, the energy shock around
the world is likely to linger much longer. The South Asia, in particular, is heavily hit as most of these countries import their energy needs from the Gulf through Strait of Hormuz.
Iran has placed a virtual chokehold on supplies through the Strait, disrupting around 20 per cent of the energy supply around the world.
While India has managed to somehow mitigate the impact, after initial shortage of LPG, by diversifying its imports, the neighbourhood is not in a good shape. Pakistan, Sri Lanka, Bangladesh, Nepal and Maldives are witnessing crisis not seen in years and are coming up with various austerity measures.
Pakistan
The Shehbaz Sharif-led Pakistan government has announced the closure of major markets and shopping malls early to save energy in the wake of fuel supply disruptions. The markets and shopping malls in major cities will close by 8 pm from today. People in Punjab, Balochistan, Islamabad and Pakistan-occupied Kashmir will not be able to shop after the cut-off time.
In Khyber-Pakhtunkhwa, the normal timing of 8 pm will be followed in the province, but markets in divisional headquarters will be allowed to remain open till 9 pm.
Apart from measures for markets, the government has also decided that bakeries, restaurants, tandoors and shops selling food items will close by 10 pm. Even wedding halls have been asked to close by 10 pm. The number of guests at events and weddings has been capped at 200.
Fuel prices in Pakistan are already at record levels, and to pacify citizens, the Sharif administration has also decided that Pakistan’s federal cabinet will go without salaries for six months. It has also announced a subsidy of PKR 100 per litre for motorcycle users, PKR 70,000 to 80,000 for goods transport vehicles, and PKR 1,00,000 for passenger vehicles.
Pakistan Railways has been told not to increase fares for economy class passengers.
Earlier in March, Islamabad announced it was planning a subsidised fuel scheme for motorcyclists and rickshaw drivers to cushion the impact of a massive hike in oil prices. Fifty per cent of Pakistani government staff is already working from home on a rotational basis. Schools were also closed for two weeks in March.
Even its cricket league has been moved behind closed doors to save fuel.
According to Al Jazeera, Pakistan relies on imports for more than 80 percent of its oil needs. Between July 2025 and February 2026, its oil imports totalled $10.71bn, while the calendar year total in 2024 was more than $15bn.
Nepal
Nepal is also heavily affected by the energy crisis. The newly elected prime minister, Balen Shah, in an emergency cabinet meeting on Sunday, decided to extend the weekend to both Saturdays and Sundays for government offices and educational institutions to cope with the energy crisis.
The government is reportedly also exploring legal measures to convert petrol and diesel vehicles to electric power, Al Jazeera reported.
Nepal depends almost entirely on India for its fuel supplies. New Delhi had in March assured Kathmandu that fuel supplies will remain regular for at least the next three months.
Amid the disruption in oil supply, prices have surged in Nepal’s domestic market. Along with fuel, prices of several food and non-food items have also risen, affecting households and businesses.
Prices of aviation fuel have more than doubled in the Himalayan state, disrupting its tourism sector. Petrol and diesel prices have already been raised to record levels.
The finance ministry has also announced a cut in fuel facilities for government employees depending on their categories. The fuel allocation for Secretaries and Special Category officials has been reduced from 125 litres to 70 litres. For Joint Secretaries, the allocation has been halved from 100 litres to 50 litres. The petrol allocation for pooled vehicles (30 persons) has been reduced from 75 litres to 35 litres, while diesel allocation for pooled vehicles has been brought down from 100 litres to 50 litres. Moreover, fuel allocation for motorcycles and scooters has been reduced from 12 litres to 8 litres.
Bangladesh
The Bangladesh government has decided to operate offices and banks for only seven hours while ordering shopping malls to close by 7 pm. Offices have also been told to cut power consumption, including by avoiding excessive lighting.
Dhaka has also banned decorative lighting at events. Public offices have been told to reduce the use of fuel and avoid non-essential travel.
The cabinet has also ordered 30 per cent spending cuts on fuel and power at government offices, suspended some staff training, and stopped purchases of new vehicles, ships and aircraft.
The education ministry has directed schools to shift towards virtual mode to reduce transportation and facility power consumption.
India supplied around 5,000 tonnes of diesel to Bangladesh in March.
Sri Lanka
Sri Lanka, which imports 60 per cent of its energy needs—largely from West Asia—has introduced several austerity measures to tide over the crisis.
It has introduced fuel rationing through a QR-based arrangement. Under this arrangement, motorbikes are allowed eight litres of petrol per week, tuk-tuks 20 litres, and cars 25 litres. Buses and lorries have been allowed 100 and 200 litres of diesel respectively.
Colombo has also raised fuel prices by approximately 33 per cent since the start of the war. Reports have predicted that food prices in the Indian Ocean country will increase by 15 per cent.
Wednesdays have been announced as government holidays. The government has also raised power tariffs for households and industries. According to reports, the country has also reduced train and bus services.
Apart from these countries, the Maldives too is facing the effects of the fuel supply disruption and has sought energy supplies from India. It has increased fuel prices to maintain supply.
