No room for fuel price cut despite global price drop: Govt.

Colombo, June 17 (Daily Mirror) - Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando said the government is currently unable to reduce domestic fuel prices despite the decline in global fuel prices, as Sri Lanka is still using fuel stocks purchased at higher prices.

Speaking at a special media briefing held today (17) to explain the country’s economic situation, Dr. Fernando said fuel currently being consumed in Sri Lanka was imported several months ago at significantly higher prices.

“As long as those higher-priced fuel stocks remain, it is not possible to reduce domestic fuel prices,” he said.

However, the Deputy Minister said the government would be in a position to review fuel prices once the existing stocks are exhausted and lower-priced fuel imports begin to arrive.

Responding to a question on whether the most recent fuel shipments had been purchased at lower prices, Dr. Fernando said the country would first have to consume fuel imported under previous, higher-priced orders before benefiting from lower global prices.

“It will take some time before the lower-priced fuel reaches consumers. We expect prices to decline, and when that happens, we will consider maintaining the current relief or reducing fuel prices further,” he said.