Petroleum Support Fund (PSF) Scheme was announced by the then President in the 2005 Independence Day speech to eliminate the effect of volatility in international crude oil and products and stabilize domestic prices. The administration of the Scheme started in the year 2006. The Guidelines for the implementation of the PSF prepared by the PPPRA in consultation with the industry Operators was also approved by the Government.
The PSF Guidelines do not supersedes the Mandate of the Agency established by the Act (No.8 of May, 2003) of the Parliament. In administering the PSF, the relevant potion of the Mandate may take precedence over the PSF Guidelines. The Executive Secretary is empowered by the Act to ensure:
- Products availability through regulation of petroleum products supply and distribution.
- Prevention of restrictive trade practices harmful to the sub sector.
In principle, the petroleum Support Fund (PSF) is funded by the three tiers of Government to stabilize the domestic prices of petroleum products against volatility in international Crude oil and Products Prices. However, from inception payment into the Fund has been derived borne by either the Federal Government Budget or through the Domestic Excess Crude Account.
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