Methodology to adjust fuel prices in line with market trends | Daily News


Methodology to adjust fuel prices in line with market trends

Providing direct benefits to public

Power and Energy and Passenger Transport Management Minister Mahinda Amaraweera said yesterday that the Government is formulating a methodology to adjust the fuel prices in line with the market trends in order to give direct benefits to the public of any global decrease of fuel prices.

“I discussed the drop in fuel prices in the world market with the relevant officials of the Ceylon Petroleum Corporation (CEYPETCO) and they expressed their willingness to provide some relief from the drop in prices,” he added.

“On many occasions, even though the fuel prices are reduced, the benefit does not go to the public directly since there is no proper methodology.  We have to check whether the benefit has really been passed on to the public directly. If we reduce fuel prices in the domestic market, we cannot assure that traders will pass the full benefit to the consumer as no such thing happened in the past. We need to see a drop in electricity tariffs, bus and trishaw fares if there is a considerable price reduction on fuel and just reducing the price of a loaf of bread or plain tea by Rs.5 will not be enough,” the minister said.

“Therefore, we do not want to reduce the fuel prices at once. We must do it in a proper manner,” said Minister Amaraweera.

He was addressing a media briefing at the Information Department yesterday.

“President Gotabaya Rajapaksa always advises us to ensure relief to the people not as an election promise, but thinking of the actual benefit for the people.”

The Minster further said that investigations undertaken so far with regard to the several power cuts recently has revealed that certain people had done this deliberately to undermine the credibility of the government.

“We will continue the investigations and punish all the responsible regardless of their status,” he added

Meanwhile, discussions are underway to enter into direct agreements with several governments for the supply of fuel instead of going through intermediaries,” he said.


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