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Fuel price fund impractical now despite cabinet approval: Energy Ministry

16 Feb 2022

  • Energy Ministry claims rising world market prices make immediate establishment impractical
BY Buddhika Samaraweera Although the Cabinet of Ministers has approved the establishment of a fuel price stabilisation fund, the Energy Ministry has stated that it is, in the present context, not practical to set up, as fuel prices in the world market are continuing to rise. Speaking to The Morning yesterday (15), Energy Ministry Secretary K.D.R. Olga said that cabinet approval has been granted to set up a fuel price stabilisation fund. She also said that the Cabinet has been informed about the mechanism through which the said fund would be established.    “Approval has been given to set up a fuel price stabilisation fund. Now, all we have to do is complete the work related to setting it up. However, in the face of rising fuel prices in the world market, it is now impossible to establish it. It can only be set up when there is a decline in prices,” she added.   Speaking to The Morning on an earlier occasion, Olga noted that the Cabinet had given its principle approval to set up a fuel price stabilisation fund following a recommendation made by the Cabinet Sub-Committee appointed to look into the issues of the Ceylon Petroleum Corporation. Meanwhile, when queried whether there are any plans to introduce a pricing formula to determine fuel prices in the current situation, she said that there is no plan to introduce a pricing formula as of now.  “There have been no official discussions regarding the introduction of such a formula, but there were only some media reports.”  


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