PM orders strictness against smuggling, illegal hoarding of petroleum products amid fuel crunch

Prime Minister Shehbaz Sharif on Tuesday directed authorities to take strict action against the smuggling and illegal hoarding of petroleum products, citing the evolving regional situation.

The development came a day after President Asif Ali Zardari and the prime minister assured participants in a high-level meeting that adequate fuel stocks were available to meet the country’s needs, with future arrangements also underway.

President Zardari had emphasised that, amid pressures on oil and gas supply, rising energy costs and the changing regional environment, all possible measures should be taken to reduce the burden on the common man, particularly in essential goods and services.

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According to a statement issued by the Prime Minister’s Office, PM Shehbaz chaired a high-level meeting to review the petroleum supply chain, conservation measures and steps aimed at ensuring efficiency in the current situation.

The meeting also examined proposals to provide relief to low-income segments facing economic pressures. The prime minister directed relevant ministries to finalise recommendations in consultation with provincial governments and submit them for approval.

Emphasising strict enforcement, the premier instructed authorities to act firmly against those involved in smuggling and illegal stockpiling of petroleum products, warning that no leniency would be shown in maintaining market stability.

He noted that over the past three weeks, the federal government had taken significant measures to support vulnerable segments and reiterated that efforts would continue to prioritise relief for the underprivileged.

The prime minister said the government had provided relief worth Rs129 billion to the public by reducing development expenditure and implementing austerity and savings measures to prevent an increase in fuel prices.

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Expressing satisfaction over fuel availability, PM Shehbaz said that timely decisions by the federal government had ensured sufficient petroleum stocks to meet national requirements. “Providing relief to the public remains our foremost priority,” he said.

The meeting was briefed on progress in implementing austerity measures. Officials informed participants that the demand and supply of petroleum products, as well as the entire supply chain, were being regularly monitored through a digital dashboard to ensure transparency and efficiency.

Those present at the meeting included Federal Minister for Economic Affairs Ahad Cheema, Minister for Information and Broadcasting Attaullah Tarar, Minister for Petroleum Ali Pervaiz Malik, Minister for IT and Telecom Shaza Fatima Khawaja, Minister for Power Sardar Awais Ahmad Khan Leghari, Adviser to the Prime Minister on Privatisation Muhammad Ali, Minister of State for Finance and Railways Bilal Azhar Kayani, Special Assistant to the Prime Minister Tariq Bajwa, and senior government officials.

Earlier this month, the government sharply increased diesel and petrol prices by Rs55 per litre, or 20 per cent, citing the ongoing US-Israel and Iran conflict, which has disrupted global supply chains and pushed crude oil prices to a two-year high.

In response to the crisis, both the federal and provincial governments had introduced a series of austerity measures, including an additional weekly holiday, a reduction in free petrol allocations for ministers, curbs on protocol vehicles, and proposals to provide subsidised fuel for students.

Last week, the government had also approved a significant increase of Rs200 per litre in the fuel levy on high-octane fuel used in luxury vehicles, raising the total levy to Rs300 per litre and the price to Rs600 per litre.

Although it had been expected that the government might further increase petroleum prices due to prevailing uncertainty, it had refrained from doing so on two occasions, stating that Rs125 billion had been allocated through savings and development budget cuts to cushion consumers against rising global oil prices.