Punjab steps up fuel monitoring as global oil prices rise amid ME tensions

LAHORE:

Punjab Chief Minister Maryam Nawaz on Monday announced closure of all educational institutions till the end of the month and also imposed various restrictions on fuel consumption by government officials as the bitter conflict in the Middle East chokes energy supplies.

Tensions in the Middle East have sharply escalated after US and Israeli airstrikes assassinated Iran’s Supreme Leader Ayatollah Ali Khamenei and several senior officials last week, triggering a wave of retaliation from Tehran and widening the conflict across the region. In response to these strikes, Iran launched retaliation 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 global crude and natural gas supplies, as Tehran targets shipping in the vital Strait of Hormuz, between its coasts and Oman, and attacks the region’s energy infrastructure. The Khyber-Pakhtunkhwa government earlier today presented a two-month fuel conservation plan, reducing fuel allocations for official vehicles by 25%.

Soon after, CM Maryam announced in a post on X: “Given the extraordinary economic challenges arising from the ongoing conflict in the region, I have decided to take extraordinary measures to protect the public and manage resources responsibly.

“Until the oil crisis is resolved, official fuel supply to provincial ministers will be suspended. I have also ordered an immediate 50% reduction in petrol and diesel allocations for government officers’ vehicles.

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

She further said that government offices would implement a work from home policy, with only essential staff present in the offices.

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

Among other measures, she said all outdoor government events were suspended.

“The private sector is advised to adopt work-from-home arrangements where possible, avoid unnecessary events and limit on-site staff to essential personnel. District administrations have been directed to strictly monitor transport fares and take strong legal action against overcharging. The supply and prices of essential food items 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 growing tensions in the Middle East push global oil prices higher.

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

Officials say the measures aim 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 petroleum supervisory authority. A dedicated monitoring system will also be set up to track the movement and availability of petroleum products, according to the notification.

Oil depots in Punjab have been instructed to submit detailed daily reports on their stocks to a provincial control room. These reports should include opening stock levels, incoming supplies, daily sales and closing 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 fuel stations to check fuel availability and ensure compliance with official rates. Local governments 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 further decided to set up district oil monitoring committees in each district, headed by the deputy commissioner. The committees will include representatives from the police, Industries Department, Civil Defence, Punjab Enforcement and Regulatory Authority and oil marketing companies. Their mandate is to examine daily conditions of supply and demand and recommend rapid corrective action in the event of shortages.

Transport and logistics are also subject to closer monitoring. Officials say the movement of tankers and fuel transport vehicles will be closely monitored, with delivery documents subject to verification at several checkpoints.

Authorities have warned that vehicles that break fuel transport regulations will face hefty fines and legal action could be taken against drivers and associated companies.

To strengthen surveillance, the government also plans to introduce a mobile application for monitoring petrol pumps and oil depots. The platform, jointly developed by the Punjab Information Technology Council and the Urban Unit, will be linked to a digital dashboard and track and trace 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 enforcement activities. Border and highway checkpoints have also been instructed to intensify surveillance of fuel shipments to prevent unauthorized movement of petroleum products.

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

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This policy change comes as global oil markets are already under pressure due to escalating geopolitical tensions. Crude oil prices recently soared above $100 per barrel following the resumption of conflict in the Middle East and disruptions related to the strategic Strait of Hormuz shipping route, according to international market data.

Crude oil futures soared nearly 30% to nearly $120 a barrel, one of its biggest daily gains on record, threatening to drive up costs for products ranging from gasoline to jet fuel.

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

The outlook for higher prices has significant implications for Pakistan, where rising fuel prices typically ripple through the wider economy.

When oil prices rise, transportation expenses increase, driving up the price of food, vegetables and other essential goods. Public transport fares often follow the same path, adding financial pressure on commuters, especially students and low-income workers.

Industries and factories are also facing higher production costs due to increased fuel expenses for machinery and logistics. In agriculture, diesel-powered equipment such as tractors and tubewells are becoming more expensive to operate, potentially increasing farming costs and ultimately food prices.

Officials say the new oversight framework aims to protect consumers from artificial shortages and ensure transparent distribution of fuels as global market uncertainty persists.