K-P cuts fuel allowance by 25% as cabinet unveils two-month conservation plan amid Mideast crisis
Khyber-Pakhtunkhwa Chief Minister Sohail Afridi addresses a video message on January 27, 2026. SCREENGRAB
The Khyber-Pakhtunkhwa (K-P) government on Monday introduced a two-month fuel conservation plan, slashing fuel allowances for official vehicles by 25% amid the global energy crisis triggered by the US-Israel conflict involving Iran.
This move came as part of broader national efforts to manage fuel resources prudently amid reports of supply chain strains, rising global crude prices and regional tensions affecting imports through key routes.
Federal authorities maintained that domestic petroleum stocks remain adequate for current needs, while urging measures to prevent hoarding and promote conservation at provincial levels.
According to Special Assistant to the Chief Minister on Information and Public Relations Shafi Jan, the provincial government approved a “Fuel Conservation and Responsible Governance Initiative” aimed at reducing fuel consumption and promoting the efficient use of government resources.
“Under the plan, fuel-saving measures will be implemented for an initial period of two months on the directives of Chief Minister Sohail Afridi,” he said.
He added that, as part of the initiative, the cabinet decided that meetings within government departments would be conducted entirely through virtual platforms. It also approved a 25% reduction in fuel allowances for official vehicles.
Jan said that with this decision, the overall reduction in fuel allowances would reach 50%, as a 25% cut had already been in place since the COVID-19 period.
However, police, rescue services and other law enforcement agencies will be exempt from the fuel reduction policy.
He said the cabinet also approved the introduction of a 50% work-from-home policy for government offices in an effort to reduce fuel consumption.
In addition, the government decided to significantly limit the use of vehicles and helicopters under VIP protocol, while banning unnecessary official ceremonies and government dinners as part of broader austerity measures.
Read More: K-P imposes fuel conservation measures amid supply concerns
Jan said the cabinet had also proposed keeping educational institutions closed on Fridays to reduce fuel consumption, with virtual classes prioritised.
He added that petrol pumps would be monitored on a daily basis and strict action would be taken against hoarding.
The provincial government will also ensure the availability of diesel for farmers and wheat harvesting operations.
“The provincial government will implement fuel-saving and economic protection policies without placing an additional burden on the public,” Jan said.
*خیبرپختونخوا کابینہ اجلاس/9مارچ 2026*
بین الاقوامی صورتحال کے تناظر میں اہم فیصلے
صوبائی کابینہ نے فیول کنزرویشن اور رسپانسبل گورننس انیشی ایٹو کی منظوری دی، معاون خصوصی اطلاعات و تعلقاتِ عامہ شفیع جان
وزیر اعلیٰ خیبرپختونخوا کی ہدایات پر دو ماہ کے لئے فیول بچت اقدامات نافذ… pic.twitter.com/n52lASr21ZAddressing the provincial cabinet meeting, CM Afridi said authorities must take steps to shield the public from the economic burden created by increasing fuel costs.
He stressed that in difficult economic conditions, rulers and state institutions should be the first to reduce their privileges, adding that reducing official protocol and government expenditures could help provide relief to the public.
He criticised the traditional approach of placing the burden of economic sacrifices on ordinary citizens.
“In Pakistan, the public is always targeted when sacrifices are required. This attitude must change,” CM Afridi said.
The chief minister also referred to policies during the tenure of former prime minister Imran Khan, saying that relief had been provided to the public and businesses despite the global COVID-19 pandemic.
Afridi said the provincial government would oppose any decision that placed additional financial pressure on citizens.
He also reviewed the Ehsaas Ramazan Dastarkhwan programme, saying district administrations and members of the provincial assembly were running the initiative effectively.
The chief minister added that a large number of deserving people were benefitting from the initiative.
He directed authorities to establish Ehsaas Mazdoor Shelters at divisional headquarters for daily wage labourers.
The government sharply increased diesel and petrol prices by Rs55 per litre, or 20% on Friday — marking the first in a series of similar surges expected in the coming days due to the ongoing US-Israel and Iran conflict, which has disrupted supply chains and pushed crude oil prices to a two-year high.
The increase in petrol prices was more than the surge in international markets, as the government chose to collect more money than required from motorcyclists and car owners to subsidise the use of diesel, mostly by the public transport and agriculture sectors.
Read More: Govt drops ‘fuel bomb’
The sharp increase has intensified the cost of living, with residents reporting higher transport fares and rising prices of daily-use items.
People also reported disputes at petrol pumps, where attendants were refusing to dispense fuel worth less than one litre. According to residents, many customers asked for petrol worth Rs150 or Rs200, but pump staff declined, saying the nozzle rate is fixed and fuel is either dispensed in smaller or larger quantities, leading to frequent arguments.
The rise in petrol prices also pushed up the cost of fruits, vegetables and other daily necessities. Shopkeepers said the transport cost of bringing fruits, vegetables and goods had previously been around Rs1,000 per trip but had now increased to between Rs2,500 and Rs3,000.
Drivers providing pick-and-drop services for schoolchildren have also raised their fares, with residents saying the entire burden has shifted to the public.