Sri Lanka formula fuel price on 5th of every third month
ECONOMYNEXT – Sri Lanka which raised fuel prices in May after a long period of subsidies will apply formula pricing on the 5th day of every third month, the government said.
The cabinet of ministers had given approval for a committee made up of Treasury and Petroleum ministry officials to change petrol and diesel on a the formula.
The formula will be based on the average of world crude prices over the previous two months.
Sri Lanka’s subsidized fuel sales, which are then financed by bank credit accommodated by printed money had been a key trigger of balance of payments crises in the past. (Colombo/June26/2018)