Punjab tightens fuel control as global oil prices rise amid ME tensions

LAHORE:

Punjab Chief Minister Maryam Nawaz on Monday announced the closure of all educational institutions until the end of the month and also imposed several restrictions on fuel use by government officials as the conflict in the Middle East chokes power supplies.

Tensions in the Middle East rose sharply after US and Israeli airstrikes last week killed Iran’s Supreme Leader Ayatollah Ali Khamenei and several senior officials, prompting a wave of retaliation from Tehran and widening the conflict across the region. In response to the attacks, Iran launched retaliatory strikes against US military bases in several Gulf countries, significantly expanding the scope of the confrontation.

The conflict has already led to the suspension of around a fifth of the world’s supply of crude oil and natural gas, as Tehran attacks ships in the vital Strait of Hormuz, between its coasts and Oman, and attacks energy infrastructure across the region. The Khyber-Pakhtunkhwa government today unveiled a two-month fuel conservation plan, cutting fuel subsidies for official vehicles by 25%.

Shortly after, CM Maryam announced in a post on

“Until the oil crisis is resolved, official fuel supplies to provincial ministers will be suspended. I have also ordered an immediate 50% reduction in gasoline and diesel subsidies for vehicles of government officials.

“Protocol vehicles accompanying provincial ministers and senior government officials have also been restricted. Only one vehicle will be allowed for essential security reasons.”

He further said that government offices would implement a work-from-home policy, and only essential staff would attend offices.

Furthermore, schools, colleges and universities will remain closed from tomorrow until March 31, while exams will continue as scheduled, adding that online classes can be held during this period.

In further action, he said all outdoor government events were suspended.

“The private sector is advised to adopt work-from-home measures wherever possible, avoid unnecessary events and limit on-site staff to essential staff. District administrations have been directed to strictly monitor transport fares and take strong legal action against overcharging. Supply and prices of essential foodstuffs will also be closely monitored across Punjab.”

The Punjab government earlier introduced new standard operating procedures (SOPs) aimed at ensuring uninterrupted fuel supply and preventing hoarding, as rising tensions in the Middle East drive up global oil prices sharply.

According to a recently issued notification, authorities will implement stricter control of oil stocks, transportation and retail availability across the province.

Officials say the measures are designed to prevent artificial shortages and curb illegal fuel transfers at a time of increased volatility in international energy markets.

The provincial Department of Industries has been designated as the central authority for petroleum supervision. A dedicated monitoring system will also be established to track the movement and availability of fuel products, the notification said.

Punjab’s oil depots have been ordered to submit detailed daily stock reports to a provincial control room. These reports should include beginning stock levels, incoming supplies, daily sales, and ending balances to help authorities monitor supply flows in real time.

At the district level, deputy commissioners have been tasked with carrying out daily checks at petrol stations to check fuel availability and ensure compliance with official prices. Local administrations will also monitor customer queues and supply disruptions, while taking immediate action against hoarding or unauthorized transfers of fuel.

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The government has also decided to set up district petroleum monitoring committees in each district, headed by the deputy commissioner. The committees will include representatives from the police, Industries Department, Civil Defence, Punjab Law Enforcement and Regulatory Authority and oil marketing companies. Its mandate is to review daily supply and demand conditions and recommend quick corrective action if shortages arise.

Transportation and logistics are also coming under increased scrutiny. Authorities say the movement of tankers and fuel transport vehicles will be closely monitored, and delivery documentation will be subject to verification at multiple checkpoints.

Authorities have warned that vehicles violating fuel transportation rules will face heavy fines and legal action could be taken against drivers and associated companies.

To strengthen supervision, the government also plans to introduce a mobile application to monitor gasoline pumps and oil depots. The platform, jointly developed by the Punjab Information Technology Board and the Urban Unit, will be linked to a digital dashboard and tracking system aimed at improving transparency in oil supply chains.

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Inspection records will be uploaded through a monitoring application to maintain a centralized database of compliance activity. Border and highway checkpoints have also been ordered to step up surveillance of fuel shipments to prevent unauthorized movement of petroleum products.

Officials say the measures are aimed at maintaining stable fuel availability and avoiding potential disruptions to the provincial supply chain.

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The policy change comes as global oil markets are already under pressure from escalating geopolitical tensions. According to international market data, crude oil prices recently rose above $100 per barrel following the resumption of conflict in the Middle East and related disruptions to the strategic Strait of Hormuz sea route.

Crude oil futures soared nearly 30% to nearly $120 a barrel, one of the biggest daily jumps on record, threatening to raise costs for products from gasoline to jet fuel.

Iran has also issued a stark warning about the possible impact on energy markets. A spokesman for Iran’s Islamic Revolutionary Guard Corps said continued US and Israeli attacks on Iranian energy infrastructure could push global oil prices above $200 a barrel. The official warned that Tehran could respond by attacking energy-related facilities in the region if attacks continue.

The prospect of rising prices has important implications for Pakistan, where higher fuel costs often affect the entire economy.

When oil prices rise, transportation expenses increase, raising the cost of food, vegetables and other essential goods. Public transportation fares often do the same, adding financial pressure on commuters, particularly students and low-income workers.

Industries and factories also face higher production costs due to increased fuel expenses for machinery and logistics. In agriculture, diesel-powered equipment such as tractors and tube wells become more expensive to operate, which could raise agricultural costs and ultimately food prices.

Officials say the new monitoring framework aims to protect consumers from artificial shortages and ensure transparent fuel distribution as uncertainty continues in the global market.