Domestic fuel prices will depend on global trend: Rajitha

12 July 2018 04:19 am - 14 - {{hitsCtrl.values.hits}}

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The government would decide on fuel prices in the domestic market on the 10th of every month after taking into account the fluctuation of fuel prices in the global market, Cabinet Spokesman, Health Minister Dr. Rajitha Senaratne said.

However, private bus operators will not be permitted to increase bus fares accordingly because a hike in bus fares took place recently which was for a period of two years, he said while addressing the weekly Cabinet news briefing yesterday.

“If private bus operators and other traders want to increase their prices following the increase in fuel prices they also need to align the cost of their goods and services to the pricing formula the government came up with for fuel which requires them to reduce prices when fuel prices come down and vice versa,” Minister Senaratne pointed out.

A review committee would be set up at the Finance Ministry comprising representatives from the Finance Ministry, Petroleum Ministry, Presidential Secretariat and Cost of Living Committee with the task of reviewing global oil prices on the 10th of each month and fixing the fuel prices accordingly.

This mechanism will help to minimize losses at the Ceylon Petroleum Corporation (CEYPETCO) and lessen the burden on the Treasury. However, the Treasury will continue to absorb any extra liability in an event of an unexpected sharp increase in global oil prices, Minister Senaratne stressed.

“It should be stated that CEYPETCO still sells a litre of kerosene at a loss of Rs.14. However, global fuel prices have been steady in the past few weeks and I expect a further reduction in fuel prices in the global market in the days to come.

If there is a significant reduction in the price of fuel in the international market, the government would definitely pass the benefit of that to consumers,” Minister Senaratne stressed. (Sandun A. Jayasekera)

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Comments - 14

observer Thursday, 12 July 2018 06:37 AM

Economic expert in action !!!

DJ Thursday, 12 July 2018 06:39 AM

Why did you'll reduce it so low, cause a huge loss, increase taxes and now throttle the citizens with you'll's stupid pricing formula. You and your team had being a total failure just get out with your bunch of crappy, manipulative short sighted policy team

Mm Thursday, 12 July 2018 06:56 AM

Right!! Rajitha.

GH Thursday, 12 July 2018 07:09 AM

If the price of OIL revised 10th of each month, the bus fares should be revised as same.

Tinkiriya Thursday, 12 July 2018 07:23 AM

Then how come we paid the highest price when global oil prices were less than $30 a barrel? Paying bankrupt governments dictate the domestic prices and nothing to do with global price.

Ramesh Thursday, 12 July 2018 08:50 AM

Very True

MP Thursday, 12 July 2018 09:11 AM

Yes, why did we pay highest price when global oil prices were less than $30 a barrel? Bankrupt, idiot government!

Chari Thursday, 12 July 2018 08:53 AM

Please reduce the cost of Parliamentarians. All Luxury Vehicles and other expenses. See India as an example. Even the PM uses a basic car. Must Lead by Example. Applies to all Parties.

Doug Thursday, 12 July 2018 09:07 AM

That's the proper way, people can avoid this by following traffic rule.s

Saranga Thursday, 12 July 2018 09:18 AM

Treasury can't as it's people's taxed money- They is nothing so called Go government

udeshpannila Thursday, 12 July 2018 10:15 AM

If the fuel prices are determined by the global trend what is the purpose of having a government? What's the use of Hedging instruments?

Jayadeva Thursday, 12 July 2018 10:38 AM

BBC this morning carries an article that mentions that Oil prices suffered steep falls on Wednesday after Libya said it would boost supply, even as investors fear that trade tensions will hit demand.Brent crude dropped 6.9% - the biggest decline in more than two years - to end at $73.40 a barrel for the global benchmark.US crude fell 5% to $70.38 a barrel - its worst one-day decline in a year. Would be interested to know what fiction of imagination the Government will spin to con the public????

Premalal Thursday, 12 July 2018 11:34 AM

Losses suffered by the CPC is mainly due to over staffing, mismanagement, political interference and high import taxes on crude. To expect the people to pay such cost is grossly unfair. The best thing to do is to open up the mark to competition.

Jerome Friday, 13 July 2018 09:15 PM

E=mc sqr the formula

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Domestic fuel prices will depend on global trend: Rajitha

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