The government of Pakistan has released an initial Rs27 billion to support efforts aimed at maintaining lower petrol prices for consumers amid rising global oil costs. The move is part of a broader strategy to shield the public from inflationary pressures linked to international energy markets.
Read More: Petrol pumps threaten nationwide shutdown
The funds have been disbursed on the directives of Prime Minister Shehbaz Sharif, with the amount transferred to the Oil and Gas Regulatory Authority (OGRA). This first tranche has been drawn from the Prime Minister’s Austerity Fund, which has been established through expenditure reduction measures within the federal government.
According to officials, the released amount will be used to partially settle “price differential claims” that emerged after the government opted to keep domestic fuel prices stable despite fluctuations in the international oil market. These claims typically arise when fuel import and supply costs exceed the prices charged to consumers.
The initiative reflects the government’s continued focus on providing relief to citizens facing economic challenges, particularly in the context of global uncertainties affecting energy prices. Authorities have indicated that further financial support may be considered if needed, depending on market trends and fiscal space.
Officials also confirmed that the funds were arranged through internal savings, as part of a wider austerity drive aimed at reducing non-essential government spending. This approach is intended to balance public relief measures with fiscal discipline.
Read More: Govt slashes petrol prices with Rs127 subsidy
Going forward, the government is exploring additional cost-cutting strategies to sustain fuel price stability without exceeding budgetary limits. The effort underscores the administration’s attempt to manage economic pressures while ensuring affordability of essential commodities for the public.