Govt establishes price stabilisation fund for petroleum products

The government has formally notified a new head of account for the creation of a Petroleum Price Stabilisation Fund, following approval by the federal cabinet earlier this month.

According to a notification issued by the Ministry of Finance, all money collected under the Petroleum Prices Stabilisation Fund will be deposited in the Public Account of the Federation under the “Special Deposit Fund” category.

The notification said the rules and procedures for operating the fund will be worked out jointly by the finance division, petroleum division and the Oil and Gas Regulatory Authority (Ogra). It added that all required legal and financial approvals would be obtained separately.

The move comes after sharp increases in oil prices in recent months following the conflict involving the United States, Israel and Iran.

Officials said the government had earlier arranged a few oil shipments directly through diplomatic channels, which helped secure lower prices compared to normal market purchases.

However, those arrangements were made on a temporary basis through administrative powers, highlighting the need for a formal mechanism to manage future price fluctuations.