• Energy contingency plan to be presented to PM today ahead of ECC approval
• Measures similar to those instituted during the Covid-19 pandemic may return
• Weekly petroleum price revisions to begin from March 8
• Centre asks provinces to keep an eye on petrol stations to prevent hoarding
• Oil Marketing Association accuses local refineries of cutting agreed supplies

ISLAMABAD: The government on Thursday decided in principle to start weekly petroleum pricing from March 8 to pass on additional costs such as heightened insurance, freight and war premiums to consumers, and revive Covid-19-era measures across the country (except health-related restrictions) such distance learning, work-from-home and car-pooling to minimise foreign exchange and financial losses.

The national action plan to cope with the emerging crisis was finalised in consultation with provincial and regional governments at a meeting of the Cabinet Committee to Monitor Petrol Prices in the Wake of the Emerging Situation in the Region, constituted by the prime minister.

The meeting came as the United States and Israel’s war with Iran continued for a sixth day, disrupting supply chains as ships’ passage through the Strait of Hormuz remains paralysed.

The action plan will be presented to the prime minister on Friday (today) and, subject to his clearance and further fine-tuning, will be taken up at a meeting of the Economic Coordination Committee (ECC) of the cabinet for formal approval and implementation.

Back-to-back meetings of the three forums have been scheduled in that order, given the urgency of the matter. Sources said the contingency measures had also been discussed with the International Monetary Fund (IMF).

At the meeting of the cabinet committee on oil pricing, presided over by Finance Minister Muhammad Aurangzeb, federal ministries and provincial governments said the country had faced a similar situation during Covid-19 when Pakistan confronted even greater financial and foreign exchange challenges.

Barring health-related precautions, most of the austerity measures adopted at that time would be revived from next week to save fuel, energy and foreign exchange, while prioritising key sectors.

The meeting reviewed developments in the energy sector and assessed national preparedness while undertaking a detailed review of petroleum product stock positions across the country.

“In line with broader preparedness planning, the committee examined a phased menu of fuel conservation measures drawing on institutional protocols implemented during prior national emergencies to support demand management if needed, while carefully calibrating communications to avoid any perception of undue alarm,” an official statement said after the meeting.

It was decided that the committee would finalise its recommendations by Friday and submit them to the prime minister along with a comprehensive implementation plan covering supply assurance, enforcement, pricing mechanisms and conservation measures.

The committee will continue to meet daily to monitor developments, review stock positions and supply chain movements, and ensure timely execution across stakeholders.

Members were informed that national reserves remained at comfortable levels, with sufficient cover available for key products, and that there was no immediate cause for concern regarding the availability of petroleum products.

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

A briefing was also given on international oil market conditions, including movements in global benchmarks, freight and insurance costs, maritime dynamics and risks of congestion at key chokepoints.

The committee reviewed multiple supply and pricing scenarios to ensure preparedness under different contingencies and maintain stability in domestic energy supplies.

In this context, the committee noted that “war premium” dynamics and intensified competition for energy cargoes, particularly in Asian markets, could increase pressure on Pakistan’s external accounts if volatility persisted.

The committee also reviewed ongoing efforts to strengthen supply assurance through diversified sourcing and logistics arrangements.

Officials shared updates on diplomatic and commercial engagements with friendly countries and suppliers to secure additional crude and refined products through alternative routes and ports, including options outside high-risk corridors.

To maintain orderly market conditions, the committee discussed measures to deter hoarding, illegal storage and diversion of petroleum products through coordinated enforcement actions by provincial administrations in collaboration with the Oil and Gas Regulatory Authority (Ogra) and other relevant agencies.

In his remarks, the finance minister emphasised that ensuring the uninterrupted availability of petroleum products across the country remained the government’s foremost priority.

He said the situation was being managed through daily monitoring, scenario planning and coordinated decision-making.

Where international price movements created unavoidable pressures, the government would respond through established mechanisms to preserve market stability.

The committee also reviewed the LNG and LPG supply situation, including supply chain risks, shipment schedules and terminal operations, and discu­ssed contingency options to manage demand if disruptions lingered.

Monitoring of petrol stations

Separately, the Centre directed provincial governments to ensure physical inspection and monitoring of retail petrol stations through deputy commissioners to prevent hoarding and profiteering.

The government also appointed Hamed Yaqoob Sheikh, a grade-22 officer of the Pakistan Adm­inistrative Service, as secretary of the petroleum division — a position that had remained vacant for the past two months.

Mr Sheikh previously served as secretary for finance and planning and was currently serving as national food security secretary.

In a separate statement, Ogra assured the public that the country currently held sufficient stocks of petroleum products to meet national demand and there was no need for panic buying or hoarding.

The regulator also said that in light of the prevailing geopolitical situation, authorities were closely monitoring the supply chain to ensure the uninterrupted availability of petroleum products across the country.

“The existing stock position remains comfortable and well within the prescribed requirements,” it said.

It warned that strict action would be taken against any individual or entity found involved in illegal hoarding or storage of petroleum products at unauthorised locations, particularly at places other than duly licensed oil depots and retail outlets of oil marketing companies (OMCs).

According to Ogra, any premises found involved in illegal storage of petroleum products would be sealed.

It also advised the public not to pay attention to rumours and continue normal consumption patterns as the petroleum supply situation in the country was stable.

Concerns raised about local refineries

Separately, the Oil Marketing Association of Pakistan (OMAP) wrote a letter to the Ogra chairman for his attention to a “serious concern regarding the product supply commitments made by local refineries during the last product review meeting”.

The letter, seen by Dawn, said that during the meeting, the committed volumes from local refineries were mutually agreed, finalised and locked.

“Based on these confirmed commitments, most OMCs planned their supply strategies accordingly and did not arrange import cargoes, as the local refinery allocations were expected to meet the agreed requirements,” the letter said.

However, during the current month, local refineries had “unilaterally deviated” from the agreed commitments and introduced a so-called allocation system.

“Under this arrangement, refineries are offering limited quantities of products to OMCs based on certain averages rather than honouring the agreed volumes.

This action constitutes a clear violation of the commitments made during the meeting,” the letter said.

Published in Dawn, March 6th, 2026