A new pricing formula taking into consideration the international fuel price reduction is to be submitted to the President soon, Petroleum Minister Chandima Weerakkody said. He said the formula would be discussed with the Finance Ministry before implementation.
“The Government will take a decision regarding the reduction of fuel prices with the implementation of a new price formula. We expect the new pricing formula will be implemented within a month. There should be a basis for reducing prices. “There is a fluctuation of prices in the world market and reductions cannot be done on a regular basis. We will prepare a report on how it should be done and send it to the President,” he said.
Mr. Weerakkody said that the ministry in its recommendations would propose to whom concessions should be given.
A senior Finance Ministry official said the fuel concessions should be given in a manner that it did not further burden the national budget. “We cannot decide on a fuel price reduction based only on the falling international prices,” he said.
Over the weekend, the price of crude oil dropped to less than US$ 45 a barrel, compared to about US$ 100 during the same period last year. Opposition politicians have called on the Government to further reduce prices.
“The Government will take a decision regarding the reduction of fuel prices with the implementation of a new price formula. We expect the new pricing formula will be implemented within a month. There should be a basis for reducing prices. “There is a fluctuation of prices in the world market and reductions cannot be done on a regular basis. We will prepare a report on how it should be done and send it to the President,” he said.
Mr. Weerakkody said that the ministry in its recommendations would propose to whom concessions should be given.
A senior Finance Ministry official said the fuel concessions should be given in a manner that it did not further burden the national budget. “We cannot decide on a fuel price reduction based only on the falling international prices,” he said.
Over the weekend, the price of crude oil dropped to less than US$ 45 a barrel, compared to about US$ 100 during the same period last year. Opposition politicians have called on the Government to further reduce prices.
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