Petroleum Resources Development Minister Arjuna Ranatunga this week told reporters that the Cabinet approval has only been granted for a fuel pricing mechanism and not for a formula, as claimed by the Finance and Mass Media Ministry.
According to the Cabinet-approved fuel pricing mechanism, he noted that the government has the authority to decide to what extent the fuel prices should be increased or decreased.
The minister said when the oil prices are falling in the world market, the government would provide the full benefit to the public.
However, when the oil prices are skyrocketing in the world market, the government has the discretion to decide to what extent the adverse impact of it would be transferred to the public.
He averred that the government needs to have the discretion to decide on the fuel prices to minimise the adverse economic and social impact of high fuel prices on the public.
The Finance and Mass Media Ministry, with a substantial increase in fuel prices early this month, announced that Sri Lanka would reprice fuel every two months, utilizing a formula based on the Platts Singapore benchmark prices.
Expressing his personal opinion, Ranatunga said that Ceylon Petroleum Corporation should focus on public welfare rather than generating profits.