ISLAMABAD: The federal government has established a Petroleum Price Stabilization Fund in a major step aimed at addressing sharp fluctuations in petroleum product prices and ensuring greater price stability across the country.
According to a notification issued by the Ministry of Finance, a dedicated government account has been allocated for the fund, while letters have also been sent to relevant institutions and the accountants general of all four provinces.
Provincial governments have been directed to complete all arrangements related to the collection of funds.
The notification stated that all funds collected under the mechanism will be transferred to the federal government’s public account. A special account head and object code have also been assigned to ensure proper financial management and transparent transactions.
A Legal and finacial framework for
The government said the rules and regulations for the fund will be jointly formulated by the Ministry of Finance, the Petroleum Division, and Oil and Gas Regulatory Authority.
A separate legal and financial framework for maintaining stability in petroleum product prices will also be approved.
Government sources said the Petroleum Price Stabilization Fund is part of a broader strategy to minimize the impact of volatility in global oil markets and shield consumers from unusual increases in fuel prices.
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