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Wednesday, 11 March 2020 03:09 - - {{hitsCtrl.values.hits}}
Former Finance Minister Mangala Samaraweera yesterday contended if the fuel price formula introduced by the former Government had continued, it would have been possible to reduce all fuel prices by at least Rs. 20 per litre from this week.
Releasing a statement, Samaraweera argued that the price reduction could have been implemented from 10 March, given the steep reduction of international prices. According to the former Minister, Octane 92 Petrol which was Rs. 138 per litre, was reduced to Rs. 137 in September, and could be further revised to just Rs. 117 this week.
By the same estimate, Octane 95 Petrol could be reduced from Rs. 161 to Rs. 141, Auto Diesel from Rs. 104 to Rs. 84, and Super Diesel from Rs. 132 to Rs.112.
“During the ‘Yahapalanaya’ Government, fuel prices were revised on the 10th of every month in accordance with the fuel price formula, to give maximum benefit to the consumers of Sri Lanka, comparing prices in the world market,” the statement said.
It went onto point out that Samaraweera, when he introduced the fuel price formula, had promised to pass the benefit of world oil price fluctuations to the consumers by reducing the oil prices in the local market.
“Now the international oil price has come down to $45 per barrel from $65, when the fuel price was last revised in September 2019,” it added.
The statement also recalled the former Government had also introduced a price formula for another essential commodity, domestic gas. As a result, the price of a 12.5 kg gas cylinder sold for more than Rs. 2,000 in 2015 has been reduced to Rs. 1,500.
“A reduction in fuel prices will also pave the way to reduce bus and three wheeler fares, thereby reducing the cost of living of the people who have already been severely affected under this Government, due to exorbitant price increase of rice, vegetables and other essential goods. The poor people were also taken for a ride by promising a parcel of essential goods free of charge by President Gotabaya Rajapaksa,” the statement said.
The former Finance Minister further stated that if the Government does not pass the benefit of fuel price reduction in the world market to the people in the country, it could be seen as though this Government is not doing anything to provide relief to the people.
