The government has released Rs27 billion to the Oil and Gas Regulatory Authority (OGRA) as the first tranche to settle outstanding price differential claims, following directions from the Prime Minister.
According to official sources, the funds have been allocated from the Prime Minister’s Austerity Fund to address liabilities arising from the government’s decision to shield consumers from the impact of rising international oil prices.
The allocation is part of a broader effort to manage the financial burden created by price controls while ensuring relief for the public. Officials said the funds were generated through various expenditure reduction measures implemented across federal government departments and subsequently deposited into the austerity fund.
Price differential claims emerge when the government absorbs part of the increase in fuel prices instead of passing the full impact on to consumers, resulting in financial obligations that must later be settled.
Sources further said the government is exploring additional cost-cutting measures to maintain fiscal discipline while continuing to provide relief to the public. Efforts are underway to identify further savings within the existing budget framework to support such initiatives.
