Punjab tightens fuel monitoring 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 various restrictions on fuel consumption by government officials as the fierce conflict in the Middle East chokes energy supplies.

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

The conflict has already led to the suspension of about a fifth of global crude and natural gas supplies 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 earlier today introduced a two-month fuel savings plan that reduced fuel quotas for official vehicles by 25%.

Soon after, CM Maryam announced in a post on X: “In light of 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 quotas 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 purposes.”

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

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

In several measures, she said all public outdoor events were suspended.

“The private sector is advised to adopt arrangements to work from home 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 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 rising tensions in the Middle East push up global oil prices sharply.

According to a recently issued notification, the authorities will implement stricter monitoring 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 industry department has been designated as the central focal authority for petroleum supervision. A dedicated monitoring system will also be established to track the movement and availability of fuel products, according to the announcement.

Oil depots across Punjab have been asked to submit detailed daily stock reports to a provincial control room. These reports should include opening stocks, 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 conducting daily checks at petrol stations to verify the availability of fuel and ensure compliance with the official price rates. Local administrations will also monitor customer queues and supply disruptions while taking immediate action against hoarding or unauthorized fuel transfers.

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The Government has 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 review day-to-day supply and demand conditions and recommend prompt corrective action if shortages occur.

Transport and logistics are also being put under increased scrutiny. Officials say the movement of oil tankers and fuel transport vehicles will be closely monitored, with delivery documentation subject to verification at multiple checkpoints.

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

To strengthen supervision, 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 Board and the Urban Unit, will be linked to a digital dashboard and a track-and-trace system to improve 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 monitoring of fuel shipments to prevent unauthorized movement of petroleum products.

Officials say the measures are intended to maintain stable fuel availability and avert potential disruptions to the provincial supply chain.

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The policy shift comes as global oil markets are already under pressure from escalating geopolitical tensions. According to international market data, crude oil prices have recently risen to over $100 per barrel. barrel after renewed conflict in the Middle East and disruptions associated with the strategic shipping route the Strait of Hormuz.

Crude oil futures rose nearly 30% to nearly $120 a barrel. barrel, one of its biggest one-day jumps ever, and threatened to raise costs on products from gasoline to jet fuel.

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

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

When oil prices rise, transportation costs rise, pushing up the price of food, vegetables and other essential goods. Public transport prices often follow suit, adding financial pressure to commuters, particularly students and low-income workers.

Industries and factories are also facing higher production costs due to increased fuel expenditure for machinery and logistics. In agriculture, diesel-powered equipment such as tractors and tube wells become more expensive to operate, potentially increasing farm costs and ultimately food prices.

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