High level sources at the Energy Ministry recently told The Morning last week that the previous Fuel Price Stabilisation Fund, which was set up in 2020 to absorb shocks in global price fluctuations without changing local oil prices, which at the time had between Rs. Against this backdrop, Gammanpila had submitted a Cabinet paper last April to re-establish the Fund, for which Cabinet approval is yet to be granted. Due to this, the expected objectives of setting up the Fund could not be achieved, Ministry sources had said. He also said that the said Fund would be set up to absorb both profits and losses by maintaining fuel prices unchanged. However, amidst controversy over the Government’s decision to increase fuel prices, Dr. Gunawardana recently told The Morning that the said Fund may have “evaporated” by now.

Source: The Nation June 23, 2021 18:00 UTC