Abbasi Urges Petrol Price Deregulation and Promotion of Electric Vehicles

While the energy traders and refinery executives in Houston, Texas, are well-versed in the volatility of the WTI and Brent benchmarks, the current geopolitical firestorm in the Middle East is creating a extremely different kind of pressure cooker in South Asia. For those of us monitoring the energy corridors from the Port of Houston to the streets of Islamabad, the ripple effects of the US-Israel war on Iran are no longer just theoretical projections on a Bloomberg terminal—they are manifesting as a full-blown economic crisis in Pakistan. The sudden spike in global oil prices, triggered by the February 28 strikes on Iran, has sent fuel costs in Pakistan skyrocketing, leading to a desperate call for systemic reform from some of the country’s most experienced political figures.

The Cost of Conflict: Fuel Shocks in Pakistan

The numbers coming out of Islamabad are staggering. In a matter of weeks, the cost of petrol has jumped from Rs266.17 to Rs378 per litre, even after a partial reduction in a recent hike. The situation for high-speed diesel (HSD) is even more dire, with prices surging from Rs280.86 to Rs520.35. This isn’t just a marginal increase; it’s a price shock that threatens to paralyze transport and inflate the cost of basic goods across the region. Shahid Khaqan Abbasi, the President of Awaam Pakistan and a former prime minister, has been vocal about the government’s inability to manage this volatility. During a recent press conference, Abbasi argued that the government is simply not capable of handling the current pricing mechanism and urged a total deregulation of petroleum prices.

Abbasi’s argument is rooted in the belief that the market, rather than a fluctuating and often contradictory government policy, should dictate prices. He pointed out that the government has cycled through five different policies in a single month to determine oil prices—a level of inconsistency that creates instability for businesses and consumers alike. By recalling the 2018 decision to deregulate, Abbasi is pushing for a return to a system where the state focuses on countering hoarding rather than attempting to micromanage price hikes in an untimely manner. This shift toward global energy trends is seen by many as the only viable path forward to avoid the chaos of “elite capture.”

Beyond the Pump: The Push for EVs and Solar Independence

One of the more intriguing aspects of the current crisis is the push for a rapid transition to electric vehicles (EVs). Abbasi has specifically highlighted the need to incentivize EVs, with a particular focus on motorcycles, citing China’s successful policy framework as a blueprint. The logic is simple: if Pakistan can reduce its reliance on imported fossil fuels, it can better absorb the economic shocks of wars in the Middle East. This is not a new sentiment, but the urgency has been amplified by the ongoing conflict.

Interestingly, Abbasi noted that Pakistan has already experienced a “solar revolution” that happened largely without government interference. This organic shift toward renewable energy stands in stark contrast to the government’s handling of net-metering policies. According to Abbasi, the government changed the net-metering policy four times—ending it and then reintroducing it—which he characterizes as a symptom of “elite capture.” This pattern of policy instability has left many citizens and businesses in a state of limbo, unable to make long-term investments in green energy due to the fear of another sudden regulatory pivot.

The Geopolitical Pivot: Pakistan as a Mediator

While the domestic economic struggle continues, Pakistan is simultaneously attempting to carve out a high-stakes role on the world stage. The war, which escalated following the killing of Iran’s supreme leader Ayatollah Ali Khamenei on March 1, 2026, has placed Pakistan in a unique position. As of its close ties with the U.S., the Gulf countries, and its status as Iran’s immediate neighbor, Islamabad is positioning itself as a key mediator.

Foreign Minister Mohammad Ishaq Dar has already reiterated Pakistan’s commitment to facilitating meaningful talks between Washington, and Tehran. In a senior diplomatic meeting in Islamabad on March 29, attended by the foreign ministers of Saudi Arabia, Egypt, and Turkey, Dar expressed the hope for a “comprehensive and lasting settlement.” This diplomatic push is bolstered by Pakistan’s internal cultural capital—having one of the largest Shiite populations outside of Iran—and a growing rapport between Pakistan’s leadership and the U.S. Administration. Even Shahid Khaqan Abbasi, speaking at the Boao Forum for Asia (BFA) Annual Conference 2026, underscored that Pakistan is well-placed to support mediate tensions, noting that the attack on Iran directly endangers regional stability and has now taken on a global dimension.

The intersection of these two narratives—the domestic fuel crisis and the international mediation strategies—highlights a country at a crossroads. Pakistan is attempting to manage a volatile internal economy while leveraging its geography to influence the outcome of a global war.

Navigating Global Volatility from Houston

Given my background in analyzing the intersection of geo-politics and energy markets, it’s clear that the instability we see in Pakistan is a canary in the coal mine for any business or investor tied to Middle Eastern stability. If you are operating in the Houston area and your interests are impacted by these shifts in the Global South or the US-Iran conflict, you cannot rely on general news feeds. You need specialized local expertise to hedge against these risks.

Depending on your specific exposure, here are the three types of local professionals Make sure to be consulting right now:

Energy Market Risk Analysts

Appear for analysts who specialize in “emerging market volatility.” You need someone who doesn’t just track the price of a barrel, but who can map how diplomatic failures in Islamabad or Tehran will translate into supply chain disruptions at the Port of Houston. Ensure they have a track record of forecasting second-order effects of geopolitical conflict.

EV Fleet Transition Consultants

As the world moves toward the “EV incentive” model mentioned by Abbasi, Houston businesses with large logistics footprints should seek consultants who specialize in fleet electrification. Look for professionals who can navigate both federal tax credits and the practicalities of charging infrastructure for heavy-duty vehicles, ensuring your business isn’t crippled by the next oil spike.

International Trade & Sanctions Attorneys

With the US-Israel war on Iran creating a complex web of sanctions and trade barriers, you need legal counsel specializing in OFAC compliance and Middle Eastern trade law. The right professional will be able to audit your vendor lists to ensure you aren’t inadvertently exposed to entities caught in the crossfire of the US-Iran conflict.

Ready to locate trusted professionals? Browse our complete directory of top-rated pakistan experts in the Houston area today.