KP cuts fuel allocation by 25% as cabinet unveils two-month conservation plan amid Middle East crisis

The Khyber-Pakhtunkhwa (KP) government on Monday unveiled a two-month fuel conservation plan, cutting fuel allowances for official vehicles by 25% amid the global energy crisis triggered by the US-Israel conflict involving Iran.

The move came as part of broader national efforts to manage fuel resources prudently amid reports of supply chain strains, rising global crude oil prices and regional tensions affecting imports across key routes.

Federal authorities maintained that national oil reserves remain adequate for current needs, while urging measures to prevent hoarding and promote conservation at the provincial level.

According to Shafi Jan, Special Assistant to the Chief Minister on Information and Public Relations, the provincial government approved a “Fuel Conservation and Responsible Governance Initiative” aimed at reducing fuel consumption and promoting efficient use of government resources.

“As per the plan, fuel saving measures will be implemented for an initial period of two months as per the directives of Chief Minister Sohail Afridi,” he said.

He added that as part of the initiative, the cabinet decided that meetings within government departments would be held entirely through virtual platforms. It also approved a 25% reduction in fuel bonuses for official vehicles.

Jan said that with this decision the overall reduction in fuel subsidies would reach 50%, since a 25% cut had already been applied since the COVID-19 period.

However, police, rescue services and other law enforcement agencies will be exempt from the fuel reduction policy.

He said the cabinet also approved the introduction of a 50% work-from-home policy for government offices in an effort to reduce fuel consumption.

In addition, the government decided to significantly limit the use of VIP vehicles and helicopters, while banning official ceremonies and unnecessary government dinners as part of broader austerity measures.

Read more: KP imposes fuel conservation measures amid supply concerns

Jan said the cabinet had also proposed keeping educational institutions closed on Fridays to reduce fuel consumption, giving priority to virtual classes.

He added that petrol pumps will be monitored daily and strict measures will be taken against hoarding.

The provincial government will also ensure availability of diesel for farmers and wheat harvesting operations.

“The provincial government will implement fuel saving and economic protection policies without imposing additional burden on the public,” Jan said.

Addressing the provincial cabinet meeting, CM Afridi said authorities must take measures to protect the public from the economic burden created by rising fuel costs.

He stressed that in difficult economic conditions, rulers and state institutions should be the first to reduce their privileges, adding that reducing official protocol and government spending could help provide relief to the public.

He criticized the traditional approach of imposing the burden of economic sacrifices on ordinary citizens.

“In Pakistan, the public is always the target when sacrifices are required. This attitude must change,” said CM Afridi.

The prime minister also referred to policies during former prime minister Imran Khan’s tenure and said that relief had been provided to the public and businesses despite the global COVID-19 pandemic.

Afridi said the provincial government would oppose any decision that puts additional financial pressure on citizens.

He also reviewed the Ehsaas Ramazan Dastarkhwan program and said the district administrations and provincial assembly members were executing the initiative effectively.

The prime minister added that a large number of deserving people benefit from the initiative.

He directed the authorities to establish Ehsaas Mazdoor shelters at the divisional headquarters for daily wage labourers.

The government sharply increased diesel and gasoline prices by 55 rupees per liter, or 20%, on Friday, marking the first in a series of similar increases expected in the coming days due to the ongoing conflict between the United States, Israel and Iran, which has disrupted supply chains and pushed crude oil prices to a two-year high.

The increase in gasoline prices was greater than the increase in international markets, as the government decided to raise more money than necessary from motorcyclists and car owners to subsidize the use of diesel, mainly in the public transport and agriculture sectors.

Read more: The government launches a “fuel bomb”

The sharp rise has intensified the cost of living, with residents reporting higher transportation fares and rising prices for everyday items.

People also reported disputes at gasoline pumps, where employees refused to dispense fuel worth less than a liter. According to residents, many customers asked for petrol worth Rs 150 or Rs 200, but the pump staff refused, saying that the speed of the nozzle is fixed and the fuel is dispensed in larger or smaller quantities, leading to frequent arguments.

Rising oil prices also raised the cost of fruits, vegetables and other daily necessities. Traders said the transportation cost to bring fruits, vegetables and produce was earlier around Rs 1,000 per trip, but now it had increased to between Rs 2,500 and Rs 3,000.

Drivers providing pick-up and delivery services for schoolchildren have also increased their rates, and residents say the entire burden has fallen on the public.