The federal government has released Rs. 27 billion to the Oil and Gas Regulatory Authority (OGRA) to clear outstanding price differential claims and prevent another increase in fuel prices.
The amount is the first tranche from the Prime Minister’s Austerity Fund and has been released on the instructions of the Prime Minister.
These funds were generated through spending cuts and savings across various federal departments under recent austerity measures. The savings were pooled into the fund to support relief initiatives.
The price differential claims relate to the government’s earlier decision to absorb part of the rise in international oil prices, instead of passing the full increase on to consumers.
Officials said the move is aimed at protecting the public from additional financial burden.
Authorities are also considering further cost-cutting measures to continue providing relief while staying within fiscal limits. More savings are expected to be identified without putting pressure on the overall budget.
