Nalinda defends fuel pricing formula despite past criticism

Thursday, 3 July 2025 05:13 - - {{hitsCtrl.values.hits}}

Says formula helps manage global price volatility, reduce CPC’s financial strain from earlier irregularities
Confirms July fuel prices are based on June’s average prices, reflecting recent import costs
Notes Govt. has passed on price reductions in past seven months whenever feasible
Claims CPC still burdened by legacy debts and irregularities
Assures sufficient fuel stocks to meet demand for at least two months; rejects fears of immediate shortages

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa yesterday defended the Government’s continued use of the fuel print formula introduced by the previous administration, despite earlier criticism of the methodology.

Speaking at the weekly post-Cabinet meeting media briefing, he stressed that maintaining the pricing formula remains the most practical and reasonable approach in the current economic environment.

“The pricing formula helps to manage fluctuations in global fuel prices, while also addressing the financial strain on the State-run Ceylon Petroleum Corporation (CPC), which has built up debt due to previous irregularities,” he added.

Dr. Jayatissa explained that July’s fuel prices were determined based on the average prices recorded for June, and not on older prices from May or April.

“There was a fuel price increase in June, particularly for stocks imported during the last two weeks of the month, and this was factored into the pricing formula,” he admitted, noting that over the past seven months, the Government has passed on the reduced global fuel pricing whenever

possible.

However, Dr. Jayatissa said the effects of past irregularities continue to impact the CPC even today.

“Although those who enjoyed commissions and kept margins when purchasing fuel have been sent home, the financial burden placed on the CPC and the Government is not over yet. Otherwise, we would also like to pass on more benefits to the public,” he claimed.

Responding to recent comments by the Energy Minister citing that the country lacks adequate capacity to store fuel reserves, Dr. Jayatissa assured that the country currently holds sufficient fuel stocks to meet demand for at least two months.

He clarified that there is no immediate risk of a shortage and that the storage infrastructure is capable of handling present needs.

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