Fuel Price Stabilisation Fund not meant to stabilise fuel prices: Gammanpila

• Says if the price formula was in use, fuel prices would be higher
• Purpose of Fund was to provide relief to CEB to pay off its loans

By Ajith Siriwardana and Yohan Perera 

Energy Minister Udaya Gammanpila said today Fuel Price Stabilisation Fund was not really meant to be used to stabilise fuel prices, but to pay off loans of the Ceylon Electricity Board (CEB). 

 He told Parliament that the Fuel Price Stabilisation Fund of Rs. 48 billion was formed to use the benefit of the fuel price reduction in the World Market to pay off the loans of the CEB so as to prevent electricity tariff hike. 
Responding to a question raised by SJB MP Nalin Bandara, the Minister said the Cabinet Paper submitted by the Prime Minister in the capacity of being the Finance Minister on March 30, 2020, and the Central Bank report tabled in Parliament clearly explained the purpose of the Fund. 

“The purpose of the Fund was to provide relief to the CEB to pay off its loans and thereby prevent any increase in electricity tariff,” he said. 

Responding to a question as to why the fuel price formula was not used, the Minister said if the formula was in use, fuel prices would be in greater proportion than this. 

“A litre of Octane 92 petrol would have been Rs.167 and a litre of diesel Rs. 122 if the fuel price formula was in use,” he said.            

• A litre of Octane 92 petrol would have been Rs.167 and a litre of diesel Rs. 122 if the fuel price formula was in use