Govt to introduce new fuel price mechanism:

Drop in fuel prices imminent – Minister Weerakkody

by Rukshana Rizwie

A reduction in fuel prices is imminent and will come into effect when a retail price mechanism is tabled before Cabinet next week, Minister of Petroleum and Petroleum Gas Chandima Weerakkody told the Sunday Observer.

The price of crude oil in the world market has dipped to an all-time low, with Brent now below $40 a barrel, a seven-year low.

Petrol prices in the UK dipped below £1 on Saturday, for the first time in over six years.

The Minister said that due to a significant reduction of 30 percent in fuel prices in January this year, the Government was not in a position to bring down prices immediately. “A formula which will take into consideration fluctuating world oil prices will ensure that we reduce prices accordingly. It is only when such a mechanism is approved that we can gradually bring down fuel prices.”