ISLAMABAD: The federal government has approached provincial administrations to help absorb the financial strain caused by rising global oil prices, aiming to avoid increasing domestic fuel rates.
According to officials, the Centre has reached out — particularly to Punjab and Sindh — requesting support in managing the subsidy burden that has so far kept petrol and diesel prices stable nationwide. Senior government sources revealed that the outreach has included direct calls and meetings led by the prime minister and key cabinet members.
Punjab and Sindh are expected to respond after internal deliberations to assess whether they can accommodate the additional expense within their budgets or if adjustments to their Annual Development Programmes (ADPs) would be required.
Alongside financial support, the Centre has also urged provinces to align with proposed austerity and energy-saving measures. These include promoting remote work, reducing office attendance, and encouraging virtual meetings across both public and private sectors.
Officials emphasized the need for a coordinated national strategy to conserve energy. Suggested steps include limiting air-conditioner usage and promoting carpooling, supported by monitoring mechanisms at both federal and provincial levels.
The level of provincial cooperation will play a key role in determining future fuel pricing decisions. Although international oil prices have seen a slight dip مؤخراً, a significant pricing gap remains — estimated at around Rs75 per litre for petrol and Rs175 for diesel under current calculations.
Meanwhile, Sindh Transport Minister Sharjeel Inam Memon stated that the provincial government would fully cooperate with federal decisions aimed at preventing fuel shortages. He assured that Sindh is already implementing federal directives and is prepared to take further necessary steps.
“All efforts are being made to ensure adequate fuel availability and meet public needs until the situation stabilises,” he said, adding that Sindh would also enforce any potential lockdown if announced by the Centre.
Rs27bn released to settle oil claims
Separately, the Ministry of Finance announced the release of Rs27 billion to the Oil and Gas Regulatory Authority (Ogra) to settle price differential claims (PDCs) owed to oil companies. These claims arose after the government chose to keep fuel prices unchanged despite rising international costs.
The funds, drawn from the Prime Minister’s Austerity Fund, are part of efforts to shield consumers from inflationary pressure. Officials said the amount was arranged through spending cuts within the federal budget.
Earlier, the government had decided to maintain petrol and diesel prices from March 14 onward, with the state covering the difference payable to oil marketing companies. Initial PDC estimates stood at Rs23 billion for the first week, but total liabilities could climb to around Rs69 billion by March 27.
Authorities confirmed that a formal mechanism for verifying and auditing these claims has been developed to ensure transparency in payments.