ISLAMABAD: In a decisive move to cushion citizens from surging global oil prices, the federal government has released Rs27 billion as the first tranche to settle fuel price differential claims, signalling an aggressive push to stabilise domestic petroleum rates.
The funds have been provided to the Oil and Gas Regulatory Authority under the direction of Prime Minister Shehbaz Sharif. The allocation aims to offset the financial burden created by the government’s strategy to protect consumers from international price volatility.
Officials confirmed that the amount has been drawn from the Prime Minister’s Austerity Fund, which pools savings generated through sweeping expenditure cuts across federal departments. The initiative reflects a broader fiscal tightening effort to redirect resources toward public relief.
The payment will help clear outstanding price differential claims, a mechanism used to bridge the gap between actual fuel import costs and the prices charged to consumers. This step is expected to prevent sudden spikes in petrol and diesel prices in the domestic market.
Authorities said the government is actively exploring further cost reduction measures to sustain relief efforts without breaching fiscal limits. Additional savings are being identified through administrative reforms and stricter financial discipline.
The latest move underscores the government’s attempt to balance economic pressures with public welfare, as rising global energy prices continue to test Pakistan’s financial stability and policy response.
