Minister of Energy Udaya Gammanpila says the fuel prices in Sri Lanka will be determined by the Fuel Price Stabilization Fund in future, and not by the Cabinet of Ministers.
Speaking to media in Colombo today, Minister Gammanpila said the government will not have the power to provide fuel concessions to the people, since the Fuel Price Stabilization Fund will be regulating prices.
The Minister pointed out that a fuel pricing formula must be introduced to determine prices, at a time when crude oil prices are increasing in the world market.
He revealed that a proposal tabled by the Minister to appoint a Fuel Price Stabilization Fund on the March 1st of 2021, was approved only on the 23rd of November.
Minister Gammanpila pointed out that crude oil prices have increased by 38% during the time the committee was being established.
However, he stressed that the fund will receive capital only through the reduction of oil prices in the world market, therefore any reduction in prices will not be transferred to the public immediately.
Minister Gammanpila commented that the Treasury does not plan to release funds, and therefore claimed that the government will be unable to grant concessions on fuel price reductions to the public.
In response to questions over criticising the late Mangala Samaraweera’s fuel price formula, Minister Gammanpila said that it was the best course of action for Sri Lanka.
Minister Gammanpila explained that a decision to implement a fund was taken after carefully observing seven countries.
He explained that an Additional Secretary of the Minister of Energy will function as its chairman.
The seven members will include a representative each from the fishing community, Transport authorities, Treasury, Ceylon Petroleum Corporation, Lanka Indian Oil Company, and two specialists in price speculation.