Islamabad, March 25, 2026: An official handout of the Finance Division said on Wednesday on the directions of the prime minister, Oil and Gas Regulatory Authority (OGRA) has been provided the first tranche amounting to Rs. 27 billion, from Prime Minister’s Austerity Fund, to settle the price differential claims arising from the government’s decision to shield the consumers from the impact of rising oil prices in the international market.
The funds have been arranged through various expenditure reduction measures implemented within the federal government & deposited in the PM Austerity Fund.
Government is also considering additional cost-cutting measures to ensure that the relief to the public is provided while staying within the budget and identifying additional savings.
A directive given to OGRA by the Petroleum Division on March 20 suggested that the government had decided to absorb Rs 176.41 and RS 77.98 per litre on sale of high speed diesel (HSD) and Petrol to protect the public from the rising prices of oil.
The directive also suggested that the government had assigned the task to OGRA to deal with the Oil Marketing Companies (OMCs) and order them to sell oil products at subsidized rates to provide relief to the end consumers.
