Govt chalks out ‘action plan’ to protect fuel supplies as Middle East crisis spirals

• Gov decides on implementing distance learning, work-from-home, and weekly petrol price revisions starting March 8

• Action plan finalised in consultation with provinces, to be presented to PM Shehbaz Sharif Friday (tomorrow)

• Measures aim to conserve fuel, energy, and foreign exchange amid possible oil supply disruptions

• Daily monitoring and scenario planning to ensure uninterrupted domestic fuel distribution

 ISLAMABAD: The federal government on Thursday finalised a “national action plan” aimed at conserving fuel amid potential disruptions in oil supplies due to the ongoing conflict in the Middle East. The measures under consideration include distance learning, work-from-home arrangements, and weekly revision of petroleum prices starting March 8, according to official sources, state media reported.

The plan was formulated during consultations with the provinces at a meeting of the cabinet committee on monitoring petrol prices, set up by Prime Minister Shehbaz Sharif to assess the impact of regional tensions on domestic fuel supplies, said a Finance Ministry statement on Thursday.

Cabinet Committee Aligns Provinces on Energy Supply Position, Enforcement and Comprehensive Implementation Plan

A meeting of the Committee to Monitor Petrol Prices in the Wake of the Emerging Situation in the Region, constituted by the Prime Minister, was held today under the… pic.twitter.com/c71qx4ffn8

— Ministry of Finance, Government of Pakistan (@Financegovpk) March 5, 2026

The action plan will be presented to PM Shehbaz on Friday. Subject to his approval and final adjustments, it will then be submitted to the federal cabinet’s Economic Coordination Committee (ECC) for formal approval and implementation.

Back-to-back meetings of the three forums are scheduled Friday, reflecting the urgency of the situation. Informed sources said the contingency measures were also discussed with the International Monetary Fund (IMF), according to officials.

During Thursday’s cabinet committee meeting, chaired by Finance Minister Muhammad Aurangzeb, federal ministries and provincial representatives highlighted lessons learned from similar conditions during the COVID-19 pandemic. The committee noted that, aside from health precautions, most contingency measures—including work-from-home, distance learning, and car-pooling—could be revived from next week to save fuel, energy, foreign exchange, and reduce financial pressure on both the federal budget and household budgets.

 Energy Sector Preparedness

An official handout said the meeting also reviewed national preparedness measures, assessed petroleum product stock positions, and examined broader developments in the energy sector amidst the evolving regional and global energy situation.

“In line with preparedness planning, the committee examined a phased menu of fuel conservation measures, drawing on protocols from prior national emergencies to support demand management if required, while carefully calibrating communications to avoid undue alarm,” the statement said.

It added that the committee will finalise recommendations by Friday and submit them to PM Shehbaz, along with a comprehensive implementation plan covering supply assurance, enforcement, pricing and governance mechanisms, and conservation measures as needed.

The handout emphasised that the committee will continue daily monitoring of developments, stock positions, and supply chain movements, ensuring timely execution across all stakeholders. Members were also briefed that national petroleum reserves remain at comfortable levels, with sufficient coverage for key products, and there is no immediate threat to availability.

However, the committee noted that the situation remains fluid and uncertain, requiring sustained vigilance and prudent planning, as global supply chains and shipping routes face heightened risks and cost pressures.

 International Market Briefing

The committee received a detailed briefing on international oil market conditions, including global benchmarks, freight and insurance costs, maritime routes, and supply congestion risks at key chokepoints. Multiple supply and pricing scenarios were reviewed to ensure preparedness under different contingencies and maintain domestic energy stability.

Officials noted that “war premium” dynamics and intensified competition for energy cargoes, particularly in Asian markets, could increase external account pressures if volatility persists. Measures to strengthen supply assurance through diversified sourcing and alternate routes were also discussed, including diplomatic and commercial engagements with friendly countries and partner suppliers to secure additional crude and refined product volumes.

Operational measures were considered to reduce shipping time lags, including facilitation of timely berthing and use of national shipping capacity where feasible. To safeguard orderly market conditions, the committee also discussed deterring hoarding, illegal storage, and diversion, with coordinated enforcement by provincial administrations and the Oil and Gas Regulatory Authority (OGRA).

“The committee emphasised that preventing outward smuggling and ensuring uninterrupted domestic distribution will remain a top operational priority, supported by real-time field intelligence and strict action against violations,” the statement said.

Government Commitments

Finance Minister Aurangzeb stressed that uninterrupted availability of petroleum products is the government’s foremost objective, with all policy and operational decisions guided by this principle. He noted that daily monitoring, scenario planning, and coordinated decision-making form the backbone of government efforts.

Where international price movements create unavoidable pressures, the government will respond through predictable mechanisms to avoid market distortions and maintain stability. The committee also reviewed liquefied petroleum gas (LPG) and liquefied natural gas (LNG) supply chains, including shipment schedules and terminal operations, and discussed contingency options to manage demand efficiently while protecting priority sectors.

Regional Context

The development comes as the US-Israel conflict with Iran enters its sixth day, disrupting supply chains and paralyzing ships’ passage through the Strait of Hormuz. Pakistan has formally requested Saudi Arabia to provide an alternative oil supply route via the Red Sea to maintain its fuel supply chain.