Govt introduces new mechanism to stabilise petrol prices

ISLAMABAD: The federal government has established a Petroleum Prices Stabilisation Fund (PPSF) to help manage fluctuations in petroleum product prices.

The Ministry of Finance on Tuesday issued a notification creating a new head of account for the fund, following the federal cabinet’s approval on June 5.

According to the notification, all proceeds received under the Petroleum Prices Stabilisation Fund will be credited to the Public Account of the Federation under the major head “Special Deposit Fund.” A separate account head and object code have also been allocated for the fund.

The notification stated that the operational framework, including the rules and procedures for managing the fund, will be jointly developed by the Finance Division, Petroleum Division, and the Oil and Gas Regulatory Authority (OGRA) in line with legal and financial requirements. The necessary approvals for the mechanism will be obtained separately.

Copies of the notification have been sent to the Auditor General of Pakistan, Controller General of Accounts, Accountant General Pakistan Revenues, and the accountants general of Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan for implementation.

The Finance Division has also informed the State Bank of Pakistan (SBP), the Presidency, the Prime Minister’s Office, the Cabinet Division, the Ministry of Law and Justice, the Ministry of Energy (Petroleum Division), and all provincial governments about the establishment of the fund.

Petrol price in Pakistan from June 27, 2026

Provincial governments have been directed to make the necessary administrative arrangements for the collection and management of funds under the new mechanism.

The government said the fund is aimed at helping stabilise petroleum prices by creating a financial mechanism to cushion the impact of sharp price fluctuations in the international oil market.