Pakistan has approved the construction of the Lahore-Peshawar oil pipeline, completing the last section of a planned 1,600-kilometre fuel transportation network linking the country’s southern and northern regions.

The project is expected to improve the movement of petroleum products across Pakistan by shifting more fuel transport from roads to pipelines. Authorities believe the development will reduce transportation costs, improve supply efficiency and strengthen the country’s energy security.

Once completed, the pipeline will form a continuous corridor for transporting fuel from ports in southern Pakistan to major consumption centres in the north, reducing dependence on oil tankers for long-distance deliveries.

The approval comes as Pakistan seeks to modernise its energy infrastructure and make its fuel supply chain more reliable amid growing domestic demand.

However, the expansion has raised concerns among oil tanker operators and drivers, many of whom fear the new pipeline could reduce the need for road-based fuel transportation and threaten their livelihoods.

Despite those concerns, officials see the project as a major step toward building a more efficient and resilient energy distribution system while lowering logistics costs over the long term.