Overview
- The federal government has formally established the Petroleum Prices Stabilization Fund following a Federal Cabinet decision taken on June 5, 2026.
- The Finance Division has opened a designated Public Account entry for the fund under Major Head G12, Minor Head G123 and Detailed Object G12314 to keep receipts and spending separate and transparent.
- Letters notifying the Auditor General, Controller General of Accounts, Accountant General Pakistan Revenue and provincial accountants general have been sent so the fund can accept deposits and be recorded in official accounts.
- The Finance Division, the Petroleum Division and the Oil and Gas Regulatory Authority (OGRA) will jointly draft the fund’s operating rules and modalities, but those rules and any required approvals remain to be completed before the fund becomes operational.
- The move builds on earlier emergency steps in March that used the Prime Minister’s Austerity Fund and PSDP cuts to absorb a sharp petrol and diesel price shock and signals a permanent fiscal tool to smooth future fuel-price swings and limit direct, sudden impacts on households.