Govt releases Rs27bn to OGRA for settlement of price differential claims
- The fund comes as the first trench from Prime Minister's Austerity Fund
The federal government has released Rs27 billion to the Oil and Gas Regulatory Authority (OGRA) to settle outstanding Price Differential Claims, aimed at protecting consumers from the impact of rising global oil prices.
According to a press release issued by the Finance Division, the amount has been provided on the directions of the prime minister as the first tranche from the Prime Minister’s Austerity Fund.
The Price Differential Claims emerged due to the government’s policy of maintaining lower petroleum prices in the domestic market despite increasing trends in international oil prices, in order to provide relief to the public.
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Officials stated that the funds have been arranged through various expenditure reduction measures undertaken across the federal government and subsequently deposited into the Prime Minister’s Austerity Fund.
The government is also actively considering further cost-cutting initiatives to continue providing relief to citizens while ensuring adherence to fiscal discipline and budgetary limits.
The move is expected to support oil sector stakeholders and ensure uninterrupted supply of petroleum products across the country.
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