Finance Ministry seeks more time to reduce oil prices
by Rukshana Rizwie
The Finance Ministry has sought more time for a mechanism to reduce
fuel prices in keeping with world oil prices, which are at an all-time
low. This follows a proposal submitted by Petroleum Resources
Development Minister Chandima Weerakkody to the Cabinet.
The Minister told the Cabinet on January 13 that Finance Ministry
officials sought more time to implement a reduction in oil prices. “We
are yet to make our observations on this matter, as it needs time,” a
Secretary to the Treasury and Ministry of Finance Dr. R H S Samaratunga
told the Sunday Observer.
World crude oil prices had plummeted to a record low by Friday to USD
29.88 a barrel. The world market price of crude oil crashed to a 12-year
low for the first time since 2004. Banking groups including the Standard
Chartered had predicted it could even reach USD 10 a barrel – a level
not seen since 1998.
Secretary to the All Island Consumer Rights Protection Association
Mahen Deva told the Sunday Observer the benefit of the reduction in oil
prices were yet to be passed on to the consumer. “As a responsible
Association we call upon the Government to reduce the price of diesel to
cut down on transport costs.”
The cost of importing a litre of oil to Sri Lanka is around Rs.
27.25. However, the local market price of a petrol litre is Rs 117 and a
litre of diesel is Rs 95. Based on the new price levels, the Association
spokesman said the price of petrol and diesel could be reduced to Rs.90
and Rs.70 a litre. |