WASIM IQBAL

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has processed the disbursement of approximately Rs 38 billion in Price Differential Claims (PDC) to 34 Oil Marketing Companies (OMCs) as part of the implementation of the government’s decision to keep fuel prices at an affordable level.

The Ogra has implemented the federal government’s decision through a mechanism, duly concurred by the 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 so as to ensure robust financial discipline.

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

In an effort to shield ordinary citizens from rising fuel costs, the government had provided Rs129 billion in relief to prevent an increase in oil prices, funding the measures through development budget cuts, efficiency improvements, and conservation initiatives.

The Oil Companies Advisory Council (OCAC) had warned that prolonged delays in PDC disbursements are disrupting the working capital cycle of oil marketing companies, which must continuously finance imports, manage inventory, and ensure uninterrupted fuel distribution nationwide.

In a letter to the Petroleum Division, the OCAC argued that payments have not been fully released within the stipulated timeframe. Outstanding amounts include approximately Rs23 billion for March 14-20 (HSD and PMG combined impact), Rs48 billion for March 21-27, and Rs57 billion for March 28-April 2.