KP cuts fuel allocations by 25% as cabinet unveils two-month energy saving plan amid Middle East crisis

The Khyber-Pakhtunkhwa (KP) government on Monday presented a two-month fuel conservation plan, reducing fuel allocations for official vehicles by 25 per cent amid the global energy crisis triggered by the US-Israeli conflict involving Iran.

The move is part of broader national efforts to prudently manage fuel resources, amid reports of supply chain tensions, rising global crude prices and regional tensions affecting imports via major routes.

Federal authorities have maintained that national oil stocks remain sufficient to meet current needs, while requiring 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 has approved a “fuel economy and responsible governance initiative” aimed at reducing fuel consumption and promoting efficient use of government resources.

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

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

Jan said that with this decision, the overall reduction in fuel allocations would reach 50%, since a 25% reduction was already in place since the COVID-19 period.

However, police, emergency 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 per cent work from home policy in government offices, in a bid to reduce fuel consumption.

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

Learn more: KP imposes fuel-saving measures amid supply problems

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

He added that petrol pumps would be monitored daily and strict action would 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 conservation and economic protection policies without imposing additional burden on the public,” Jan said.

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

He stressed that in difficult economic conditions, state leaders and 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 placing the burden of economic sacrifice on ordinary citizens.

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

The chief minister also spoke about the policies pursued during the tenure of former Prime Minister Imran Khan, saying relief was provided to the public and businesses despite the global COVID-19 pandemic.

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

He also reviewed the Ehsaas Ramazan Dastarkhwan programme, saying the district administrations and provincial assembly members were effectively managing the initiative.

The chief minister added that a large number of deserving people were benefiting from this initiative.

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

The government sharply hiked diesel and gasoline prices by 55 rupees per liter, or 20 percent, on Friday – marking the first in a series of similar hikes 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 their highest level in two years.

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

Learn more: Government drops ‘fuel bomb’

This sharp increase has intensified the cost of living, with residents reporting higher transport fares and rising prices of everyday items.

People also reported conflicts at gas pumps, where attendants refused to dispense fuel worth less than a liter. According to residents, many customers asked for gasoline worth Rs 150 or 200, but the pump staff refused, saying that the flow rate from the nozzles is fixed and the fuel is dispensed in smaller or larger quantities, leading to frequent arguments.

Rising gas prices have also pushed up the price of fruits, vegetables and other essentials. Traders said the cost of transportation for bringing fruits, vegetables and goods was earlier around Rs 1,000 per trip but has now increased to between Rs 2,500 and Rs 3,000.

Drivers providing transport services for school children have also increased their fares, with residents saying the entire burden has been shifted to the public.