Govt disburses Rs38b in fuel subsidy

OGRA releases price differential claims for OMCs

ISLAMABAD:

While implementing the federal government's decision to maintain fuel prices at an affordable level, the Oil and Gas Regulatory Authority (Ogra) has processed the disbursement of approximately Rs38 billion in price differential claims (PDC) to 34 oil marketing companies (OMCs).

Ogra has implemented the government's decision through a mechanism, concurred by the federal government, aimed at improving transparency, efficiency and timeliness in the verification and release of PDCs. The framework ensures a structured evaluation process, enabling expeditious settlement of legitimate eligible claims to ensure robust financial discipline.

The authority reaffirmed its commitment to supporting government efforts to stabilise petroleum prices while safeguarding the interests of all stakeholders across the oil supply chain.

Last week, the oil industry expressed fear that it was going to face an inventory loss of Rs100 billion, which would deal a blow to the entire sector.

"The diesel price cut forces them to sell the fuel at a loss of up to Rs135 per litre. The estimated impact – over Rs100 billion in inventory losses – is not just a corporate setback; it is a systemic shock," an industry official said.