Minister of Energy Udaya Gammanpila says the proposal to set up a price stabilization fund in order to maintain a fair price for petroleum for consumers will be submitted to the Cabinet of Ministers on Monday.
Minister Gammanpila responding to a question raised by Samagi Jana Balawegaya Parliamentarian Chaminda Wijesiri in Parliament today said the Cabinet Sub-Committee on Resolving the Energy Crisis headed by the Prime Minister held discussions for five months, and has now approved it.
The Minister claimed he submitted a proposal to the Cabinet of Ministers in February considering the rapid increase in fuel prices in the world market in order to do justice to consumers.
He said there are two processes in the world pertaining to fuel prices, the price equation used by the previous administration and the price stabilization fund.
Minister Gammanpila said through their research they came to a conclusion that a price stabilization fund is more suited for low to mid income countries like Sri Lanka claiming they also observed the implementation of price equations in seven other countries prior to submitting the Cabinet Paper.
The Minister said the proposal was submitted to the Cabinet Sub-Committee headed by the Prime Minister as it did not receive Treasury approval.