Cabinet approves cost-based pricing formula for LPG

• Govt. green-lights to revise water and sewage tariffs

The Cabinet of Ministers at its meeting on Monday approved a proposal to introduce a cost-based pricing formula for liquid petroleum (LP) gas prices which will be received once a month.

The proposal, made by President Ranil Wickremesinghe in his capacity as the Finance Minister, will see gas prices revised on the fifth of every month as per the new formula, reflecting cost.

The aim the decision is to ensure an interrupted supply of domestic gas. 

Meanwhile, the Cabinet of Ministers also approved a proposal by Water Supply Minister Keheliya Rambukwella to revise the water tariff and sewerage tariff obtained at present so that the recurrent monitoring cost and the capital loan services responsibility of the National Water Supply and Drainage Board is covered.

As per the Cabinet decisions, it has been recognised that a revision of charges was needed to ensure the financial stability of the National Water Supply and Drainage Board and the supply of water services to the public uninterrupted.