The Minister said under the first step, the permits of fuel stations that have misused the subsidy scheme, will be revoked.
He said the Cabinet has ratified a joint Cabinet paper submitted by Minister Ranatunga with President in this regard.
The Minister disclosed this during a media conference held in Colombo.
At present, there are two varieties of kerosene available in the market.
The industrial kerosene is priced at Rs. 88 per litre while Lanka kerosene that is used by masses is priced at Rs. 44 per litre.
However, it has been revealed Lanka kerosene is widely used by certain bus operators and heavy vehicle operators to mix with diesel.