No parliamentary approval for Fuel Price Stabilization Fund since 2020 –  Audit Office

No parliamentary approval for Fuel Price Stabilization Fund since 2020 – Audit Office

No parliamentary approval for Fuel Price Stabilization Fund since 2020 – Audit Office

Written by Zulfick Farzan

01 Nov, 2021 | 2:25 pm

COLOMBO (News 1st); A special audit by the National Audit Office has uncovered that the Fuel Price Stabilization Fund was established without Parliamentary approval.

The Fuel Price Stabilization Fund which was established on the 18th of March 2020, did not have parliamentary approval even as of 6th September 2021.

“The Fuel Price Stabilisation Fund (FPSF) was established with a view to ensuring equitable distribution of the benefits of the unusual decline in international oil prices across the economy, rather than revising domestic fuel prices,” said the Central Bank earlier this year.

However, according to the special audit is has been revealed that funds were obtained from the Ceylon Electricity Board as a capital, deviating from the objectives of setting up such a fund.

According to the Constitution of Sri Lank funds of the Republic not allocated by law to specific purposes shall form one Consolidated Fund into which shall be paid the produce of all taxes, imposts, rates and duties and all other revenues and receipts of the Republic not allocated to specific purposes.

Yet, the surcharge on fuel from 14th of March 2020 was not moved to the Consolidated Fund but to the Fuel Price Stabilisation Fund (FPSF) which is not a constitutional establishment.

The Auditor General had recommended that it is wise to seek parliamentary approval for the Fuel Price Stabilisation Fund (FPSF).

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