News

Sri Lanka’s fuel pricing formula comes into effect in May

16 April 2018 - 930   - 0

 
Sri Lanka is set to introduce a cost-reflective transparent fuel pricing, based on international market prices, next month. This new transparent mechanism will be submitted for cabinet approval in the next two weeks, Finance Ministry sources disclosed.    
 
In this much-delayed fuel pricing formula, prices would change with international market prices similar to many other commodities people consume, a senior official of the ministry said adding that it could be implemented with effect from May 1 following the cabinet approval.  
 
There was also a strong case to gradually introduce corrective taxes to both petrol and diesel to account for externalities, this can be done with increments of Rs. 0.5 a litre per month so that the consumer will not feel the effect of these revisions, he pointed out.
 
The government was to introduce this fuel pricing formula last month in accordance with a prior commitment made to the IMF, but it had been delayed due to political upheaval faced by the ruling coalition.
 
Lanka IOC recently increased the price of a litre of diesel by Rs. 5 and petrol by Rs.9. But the Ceylon Petroleum Corporation continues to sell fuel at the current price while incurring a daily loss of Rs.33 million due to oil price fluctuations in the world market. (Bandula)   

 

  Comments - 0

  • Leave a comment

Top Stories

Windy and showery conditions to continue

Windy and showery conditions are expected to continue over the island today, the Met Department stated.  Showers or thunders...

17 August 2018 - Views : 2

UNHCR invites Sri Lanka to play an active role in the organization

17 August 2018

Keith Noyahr incident: CID to record MR's statement today

17 August 2018

India has lost one of its most regarded Intellectual and statesmen Atal Bihari Vajpayee; Sampanthan

17 August 2018



style="display:inline-block;width:300px;height:250px"
data-ad-client="ca-pub-6200193111498313"
data-ad-slot="1999573490">

 

Features & Analysis

Singer Diana King arrives in the island ahead of the Colombo Music Festival

It was a star studded morning at the Cinnamon Grand as headliner Diana King of Cinnamon Life's Colombo Music Fest...

In Pictures: Madhu Feast

The Madhu Church festival takes place every year in August when thousands of Catholic devotees flock from all over th...

Members of Big Mountain arrrive in the island ahead of Cinnamon Life's Colombo Music Festival

Richard ‘Goofey’ Campbell along with  other members of Big Mountain arrived in Sri Lanka yesterday a...

Celebrating India's 71st Anniversary of Independence with Bollywood singing icon Usha Uthup in concert

The High Commission of India is proud to present “Symphony of Freedom” by legendary Bollywood playback si...



style="display:inline-block;width:300px;height:250px"
data-ad-client="ca-pub-6200193111498313"
data-ad-slot="1999573490">