7 October 2021 01:32 pm Views - 1146
A Cabinet Paper to setting up of 'Fuel Price Stabilisation Fund' with a view to mitigate the impact of the fuel price increase on the consumers, would be presented to the Cabinet next Monday, Energy Minister Udaya Gammanpila said today.
He told parliament that he had presented the Cabinet Paper in connection with this to parliament in February last year and that it was referred to the cabinet sub-committee chaired by Prime Minister Mahinda Rajapaksa after the Treasury refused to grant the approval to it.
Responding to a question raised by SJB MP Chaminda Wijesiri, the Minister said the Cabinet Paper was discussed by the Cabinet sub committee for five months and granted approval to proceed with the proposal to set up the 'Fuel Price Stabilisation Fund' and added that the relevant Cabinet paper was scheduled to be presented to the Cabinet next Monday.
He said he presented the cabinet paper in February last year having considered the soaring fuel prices in the World Market and to mitigate the impact of the fuel price increase on the people.
"There are two mechanisms adopted in the world regarding fuel prices. One is the Fuel Price Formula, which was used by the previous Government and the second is the Fuel Price Stabilisation Fund. We found out that the Fuel Price Stabilisation Fund was the most ideal mechanism for a middle-income country like ours. I presented the Cabinet Paper after studying the Fuel Price Stabilisation Fund which was used in seven countries in the world. However, the Treasury refused to approve it and then, it was referred to the Cabinet Sub Committee on energy crisis chaired by the Prime Minister. It was discussed for five months and granted approval to proceed with the proposal," he said. (Ajith Siriwardana and Yohan Perera)