ISLAMABAD, Aug 18: The government has released Rs5 billion dues to the oil marketing companies and refineries following their threat to disrupt supplies, Dawn has learnt.

The arrears on account of price differential claims had swelled to about Rs21 billion by Aug 15 and the petroleum ministry had refused to release the amount unless verified by audit.

A finance ministry source said on Friday that the government had released Rs5 billion to the Accountant-General of Pakistan Revenue (AGPR) for disbursement to the oil companies in proportion to their share of arrears. The arrears now have declined to Rs16 billion.

The source said the disbursement would be subject to adjustment according to findings of the special audit.

He said the government was soliciting proposals to appoint an independent auditor to examine the authenticity of about Rs5-6 billion per month price differential claims of the oil marketing companies and refineries.

The decision has been taken on the recommendation of the National Accountability Bureau that has been investigating into alleged wrongdoings in oil pricing mechanism over the past six years.

Sources said the bureau had identified a number of ‘grey areas’ in oil pricing and have suggested special audits and verification of facts and figures before instituting criminal proceedings against those involved in the manipulation of prices.

In one case, NAB has flagged about Rs50 billion for further examination.

“NAB has also indicated a couple of authorities who might be proceeded against, subject to approval at the top,” an official said.

Delegations of the Oil Companies Advisory Committee had been meeting government officials and seeking immediate release the claims that had piled up over a few months as a result of freeze on petroleum prices.