Cabinet endorses pricing formula for fuel

The Cabinet yesterday endorsed the implementation of a new pricing formula for fuel in the local market reflecting international price fluctuations and others costs, it is learnt.

The government worked out the new pricing formula for implementation as the Ceylon Petroleum Corporation is cash strapped to issue fuel at subsidized rates. With the implementation of the formula, petroleum prices are slated to rise in the country.

Following the Cabinet go-ahead for the move to introduce a pricing formula, a committee was to meet last evening to discuss the methodology.

A Cabinet source the new pricing formula would reflect the costs involved in pumping, storage and maintenance, and the taxes levied on crude and refined fuel imports.

The world market prices dropped to US $ 45 a barrel in the recent past. However, the prices have increased once again. (Kelum Bandara)