Government sets up fund to cushion impact of fuel price fluctuations

ISLAMABAD: The federal government has established a Petroleum Price Stabilisation Fund to help manage the impact of fluctuations in international oil prices and reduce volatility in domestic fuel rates.

The decision was approved through an ordinance signed by President Asif Ali Zardari, creating a legal framework for the fund’s establishment and operation.

Under the ordinance, the fund will be financed through sources determined by the federal government, including budgetary allocations, grants, investment income and any other approved contributions.

The government said the fund would be used to stabilise petroleum prices during periods of sharp movements in global oil markets and support a more predictable pricing mechanism for consumers.

The ordinance also authorises the federal government to frame rules governing the administration, management and utilisation of the fund.

Officials said the initiative is aimed at reducing the impact of sudden international price swings on consumers while strengthening the country’s fuel pricing framework.