Benefits of global oil price reduction should be passed on to people: Fin Min

Dec 26, 2018 (LBO) - As a result of the price formula introduced by the Government, the price of petrol and diesel has been reduced by Rs.



30 and Rs.20 per litre respectively when compared with the last price increase on  October 10, 2018. Therefore the Government  stresses  that the bus fares and the charges in the  transport sectors such as, three wheelers and school vehicles should be reduced proportionately in order to pass the benefits of the global fuel price reduction to the people.
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Accordingly, the Government expects the regulatory institutions which are responsible for the transport sector would take necessary action to ensure that the benefits of the fuel price reduction passed on  to the passengers. At the same time, fisheries and other transport sectors should also pass on the benefit of fuel price reduction to the people as the production and transport costs of such sectors have declined following the decrease of diesel price. This would create a tendency of reducing the prices of goods and services thereby helping to cut the cost of living effectively.
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When Finance and Media Minister Mangala Samaraweera presented the Vote on Account for the first four months of the year 2019 last Friday (December 21) in the Parliament, Prime Minister Ranil Wickremesinghe announced that the fuel price would be reduced effective midnight last Friday. Accordingly, the fuel prices which were revised based on the fuel pricing formula - a litre of Octane 92 patrol has been reduced by Rs.

10 to Rs.125 from Rs.135 while a litre of Octane 95 has been reduced by Rs.

10 to Rs.149 from Rs.159. A litre of auto diesel has been reduced by Rs.
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5 to Rs.101 from Rs.106 while a litre of super diesel has been reduced by Rs.
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10 to Rs.121 from Rs.131. The Cabinet of Ministers had approved on May, 2018 the introduction of a fuel price formula to decide the fuel prices in the local market based on the price fluctuation of crude oil in the Singapore market.
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Since then, the Treasury followed that fuel price formula and reviewed the global fuel price fluctuation on the 10th of each month. The Treasury used the then prevailing price of a barrel of crude oil in the Singapore market in this practice.
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The global prices of crude oil were continuously on the rise in the recent past and consequently the fuel prices in Sri Lanka too increased until October 10th. The fuel price in Sri Lanka was increased for the last time on October 10th and at the that time the global price of a barrel of crude oil was reported as US$85. However, global price of crude oil was continusouly reduced from the month of November 2018 and the average global price of crude oil is currently reported as US per barrel.

Accordingly, the price of a litre of Octane 92 that prevailed as Rs.155 on October 10th 2018 has been reduced by Rs.30 to Rs.125 while a litre of Octane 95 that has been reduced by Rs.
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20 to Rs.149 from Rs.169. In addition, the price of a litre of auto diesel that prevailed as Rs.123 on October 10th 2018 has been reduced by Rs.
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22 to Rs.101 while a litre of super diesel has been reduced by Rs.20 to Rs.121 from Rs.141 by today.
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