If the fuel price formula is implemented, prices of petrol and diesel could be reduced by Rs. 20 per litre: Mangala

Former Finance Minister MangalaSamaraweera said that if the fuel price formula introduced by the previous government had been implemented thus far, it would have been possible to reduce the prices of all types of fuel by at least Rs.20 per litre from March 10 onwards.

During the ‘Yahapalana’ Government, fuel prices were revised on the 10th of every month in accordance with the fuel price formula to give maximum benefit to the consumers of Sri Lanka, comparing prices in the world market.

Former Finance Minister Samaraweera further added that when he introduced the fuel price formula,he had promised to pass the benefit of world oil price fluctuations to the consumers by reducing the oil prices in the local market. Now the international oil price has come down to USD 45 per barrel from USD 65 when the fuel price was last revised in September 2019.

Likewise, the government had also introduced a price formula for another essential commodity, domestic gas.As a result, the price of a 12.5 kg gas cylinder sold for more than Rs. 2,000 in 2015 has been reduced to Rs. 1,500.

Accordingly, when the price of a barrel of Brent crude oil in the Singapore market was US $. 65 the price of oil has been revised last in September 2019and the new prices by March 10, 2020 should be as follows.

The former Finance Minister further stated that when the government does not pass the benefit of fuel price reduction in the world market to the people in the country, it could be observed that this government is not doing anything to provide relief to the people.