Following a decision by the Federal Cabinet, the Government of Pakistan has officially established a dedicated Petroleum Prices Stabilization Fund designed to protect domestic consumers from sudden global energy shocks and volatile oil market spikes. Formally set up under the Public Account of the Federation by the Finance Division, the new fund will operate as a permanent financial cushion to absorb steep price hikes, such as those previously triggered by regional geopolitical tensions and supply route disruptions in the Strait of Hormuz. Moving forward, the operational modalities and rules of the fund will be managed jointly by the Finance Division, the Petroleum Division, and the Oil and Gas Regulatory Authority (OGRA). This permanent institutional framework replaces past temporary measures, such as the emergency use of the Prime Minister’s Austerity Fund, ensuring a more structured and resilient strategy to manage the country’s fuel economy and stabilize retail fuel costs for the public.