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Gammanpila explains who decides on the cost of fuel

The cost of fuel is decided upon by the Fuel Price Stabilization Fund, and not by the Cabinet Ministers said Minister of Energy Udaya Gammanpila.

He made this statement during a media brief held today (26).

“During the last few cabinet meetings, it was decided that moving forward, the Fuel Price Stabilization Fund will be deciding on the prices of Fuel, and it will not be the Cabinet Ministers. Within the last 8 months, the cost of oil has increased by 36%, and as a committee we are unable to provide immediate relief to the people,” he said.

Gammanpila added that due to the fluctuating cost of crude oil in the world market, a stable price cannot be decided upon by the Fuel Price Stabilization Fund, because if the price of crude oil drops it will be a loss to the consumer and if the price increases it will be a cost incurred for the Government.

He further said that a calculation formula will need to be made so as to decide on the cost of fuel.

“People might wonder why a fuel formula is being implemented by the same people who criticised the fuel formula created by late Minister Mangala Samaraweera. The issue with Mangala Samaraweera’s fuel price calculating formula was the transparency of his formulation. We had questions as to how his formula was made. Though Samaraweera presented his formula, he never explained how it was calculated,” said Gammanpila.

Additionally, Gammanpila said that the ideal way to regulate the price of fuel in Sri Lanka would be through the Fuel Price Stabilization fund, but a fuel price formula would also be apt in keeping consistency of fuel prices.