Sri Lanka cabinet approves formula pricing of fuel

ECONOMYNEXT – Sri Lanka’s cabinet has approved pricing fuel by formula, Science and Technology Minister Sarath Amunugama said.

"The cabinet in principle decided that there should be a price formula for fuel," Amunugma said.

Sri Lanka’s state-run Ceylon Petroleum Corporation is losing money after oil prices rose and Sri Lanka’s rupee depreciated.

Sri Lanka cut retail fuel prices sharply in 2015 with kerosene prices very low, leading to adulteration and a spike in use by industries.

Ceylon Petroleum Corporation Chairman Dammika Ranatunga told EconomyNext on May 09 that CPC wanted to keep increases in petrol and diesel to a minimum but end steep subsidies to kerosene which has led to mis-use.

The government can give targeted assistance to those who need it, he said.

(COLOMBO, May 10, 2018)

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