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FACTBOX: How is South Asia tackling the Iran war-driven energy crisis?

South Asian nations roll out fuel rationing, reduced work hours, and price adjustments to cope with soaring energy costs amid the Iran conflict. Governments are prioritizing essential sectors while encouraging conservation to ease strain on supplies.

April 06, 2026

Reuters

FACTBOX: How is South Asia tackling the Iran war-driven energy crisis?

3D printed oil barrels and rising stock graph are seen in this illustration taken March 23, 2026.

Dado Ruvic/Reuters

- Countries in South Asia, home to a fifth of the world's population and some struggling economies, have unveiled a number of measures to tackle the energy crisis triggered by the U.S.-Israeli war on Iran, which has squeezed supplies and raised prices.


Here is a look at some of the measures rolled out so far.


INDIA


  • The government slashed excise duties on petrol and diesel.

  • Windfall taxes imposed on aviation fuel and diesel exports.

  • Emergency measures invoked to divert gas supplies from non-priority sectors to key users.

  • Oil refiners directed to increase production of liquefied petroleum gas.


PAKISTAN


  • Government departments given 50% cut in fuel allowances for two months.

  • Work week shortened to four days for government offices.

  • All offices to operate with 50% staff physically present.

  • Pakistan Super League, a franchise-based Twenty20 cricket league, moved behind closed doors.


BANGLADESH


  • Offices and banks operate for seven hours, shopping malls to close by 7 p.m.

  • Offices to cut power consumption, including by avoiding excessive lighting.

  • Ban on decorative lighting at events.

  • Reduction in fuel and energy use in public offices, restrictions on non-essential travel.


NEPAL


  • One-day weekly holiday in schools and government offices extended to two days.

  • Government to make "legal arrangements" to convert petrol and diesel vehicles to electric vehicles.

  • Price of aviation fuel more than doubled to avoid supply disruption.

  • Petrol and diesel prices raised.

  • Cooking gas rationing in force.


SRI LANKA


  • Wednesday declared a public holiday to help fuel supplies go further.

  • Train and bus services reduced.

  • Power tariffs raised for households and industries.


MALDIVES


  • Seeking fuel supply from India.

  • Fuel prices raised to maintain supply.


-Compiled by Sakshi Dayal; Editing by YP Rajesh and Thomas Derpinghaus/Reuters

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