The federal government has disbursed Rs. 27 billion to the Oil and Gas Regulatory Authority (OGRA) to settle outstanding price differential claims, as part of efforts to protect consumers from surging global oil prices.

The release, approved by Prime Minister Shehbaz Sharif, marks the first tranche from the Prime Minister’s Austerity Fund. The fund has been built through spending cuts and efficiency measures implemented across federal ministries and departments.

These payments are linked to the government’s policy of limiting the direct impact of international oil price increases on domestic consumers by absorbing part of the cost.

Officials said the government is exploring additional austerity measures to maintain relief efforts without putting pressure on public finances. Further savings are expected to be redirected to ensure continued support while staying within budgetary limits.