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Finance Minister Ravi Karunanayake yesterday told Parliament that the government would introduce a Stabilization Fund for fuel price.

The Minister made this statement when responding to a query by the opposition.

Karunanayake said the proposed fuel Price Stabilization Fund would be presented for approval at the next Cabinet meeting. He also said the new mechanism would keep the fuel prices stabilized for a long period without being subjected to frequent fluctuations.

The Minister further said the loss incurred by the Ceylon Petroleum Corporation (CPC) as at January 8, 2015 was Rs. 280 billion. “The hedging deal resulted in a loss of Rs. 130 billion. We cannot change everything overnight magically,” he added.

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