Fuel prices should be reduced by Rs.120 for the benefit of the Public - Ananda Palitha

With the appreciation of the Sri Lankan Rupee against the US Dollar, the Government could reduce the prices of all fuel varieties by a minimum of Rs. 120, Samagi Jana Balawegaya (SJB) affiliated Samagi United Trade Union Force (SUTUF) convener and spokesman Ananda Palitha said.

He told the Daily Mirror that the retail price of a litre of 95-octane 95 petrol could be reduced by at least Rs. 125. 

A liter of naptha, furnace oil, and kerosene would be reduced by Rs. 110 without any issue, he said.

Earlier, Energy Minister said in Parliament that at the upcoming fuel price revision on April 1 the prices could be reduced by a considerable margin, which could be felt by consumers.

“That considerable margin should be more than Rs 100, but reducing the price by Rs 50 is exploitation,” he said.

The reduction in the retail price of a litre of diesel will result in a significant reduction in the electricity bill. Naphtha and diesel fuel are 100% refined by the local refineries.

"Crude oil is bought at the lowest market price in the world market. Accordingly, the retail prices of naptha, furnace oil, and kerosene could be reduced by a large margin," he said.

"If the Government thinks that more benefit should be given to the people, it should reduce the price of a liter of Octane 95 petrol by Rs. 100, and the balance amount can be given to reduce the retail price of diesel in the local market. So the diesel price would be reduced by Rs. 120, which can help reduce the overall economy in the country," Palitha said.

The Ceylon Petroleum Corporation (CPC) said it had made a profit of Rs. 9 billion last month, and in January the profit was Rs. 12 billion after the tax payments. 

However, the buying of fuel is not done in a transparent manner. The crude oil was boughton the emergency basis by passing the open tender procedure. 

However, the CPC had to pay billions as late charges as the ships were anchored for an extended period of time, as the payment was delayed due to the economic crisis prevailing at that time. Despite these issues the CPC said it made a profit of 9 bn. 

“The CPC is currently making large profits by selling Octane 95 petrol after because of the tax component of Rs 82 which is passed on to the consumer,” Palitha said. (Chaturanga Pradeep Samarawickrama)