The Oil and Gas Regulatory Authority has processed the disbursement of approximately Rs. 38 billion to oil marketing companies as part of the government’s efforts to maintain stable petrol prices across Pakistan.

The payments have been made under the Price Differential Claims (PDC) mechanism, a system designed to compensate companies for selling petroleum products below prevailing market rates. This move aims to shield consumers from sudden price hikes while ensuring supply continuity in the fuel sector.

According to officials, the funds have been distributed among 34 Oil Marketing Companies (OMCs), helping offset financial losses incurred due to controlled pricing. The initiative reflects the government’s broader strategy to balance consumer relief with industry sustainability.

Authorities have emphasized that the disbursement follows a revised framework focused on improving transparency and efficiency. The updated mechanism introduces better verification processes, allowing for quicker claim settlements and reducing delays that previously affected the system.

Experts note that timely payments to OMCs are essential to maintaining market stability. Without such support, companies may face cash flow challenges that could disrupt fuel supply chains or lead to pricing pressures in the long run.

The decision comes at a time when global oil markets remain volatile, making domestic price management increasingly complex. By using the PDC mechanism, the government aims to absorb some of the impact of international fluctuations and protect consumers from sharp increases.

While the policy provides short-term relief, analysts suggest that long-term sustainability will depend on broader energy reforms and fiscal management. For now, the Rs. 38 billion disbursement highlights the government’s commitment to keeping fuel prices in check while supporting the operational needs of oil marketing companies.