The Government of Pakistan has formally established the Petroleum Prices Stabilization Fund to help manage fluctuations in fuel prices and ensure greater stability in the domestic petroleum market.
According to an official notification issued by the Finance Division (PF Wing) on June 29, 2026, in Islamabad, the fund has been created following a federal cabinet decision (case No. 388/Rule-19/2026/462 dated June 5, 2026). The initiative is aimed at stabilizing petroleum prices and improving financial management of fuel-related revenues.
The notification, issued by Deputy Secretary Muhammad Sohaib, stated that all proceeds collected under the fund will be deposited into the Public Account of the Federation. The designated accounting structure includes Major Head G12 (Special Deposit Fund), Minor Head G123 (Economic Fund), and a new detailed object titled G12314 (Petroleum Prices Stabilization Fund).
The fund has been communicated to key financial and accounting authorities across the country, including the Auditor General of Pakistan, the Controller General of Accounts, and all provincial accountant generals in Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan, as well as the Accountant General Pakistan Revenue in Islamabad.
Officials said the creation of the fund is part of broader efforts to ensure smoother handling of petroleum-related price changes and reduce the impact of international oil price volatility on consumers. By maintaining a structured financial mechanism, the government aims to provide more predictable pricing and improve coordination between relevant departments.
The notification further stated that the operational procedures and governance framework for the fund will be developed jointly by the Finance Division, Petroleum Division, and the Oil and Gas Regulatory Authority (OGRA). Necessary approvals for these modalities will be obtained separately once finalized.
Authorities emphasized that the establishment of the Petroleum Prices Stabilization Fund marks an important step toward better fiscal planning and improved management of energy sector challenges in Pakistan.
