Petrol and diesel would be market priced in the future, Finance Minister says

In a hopeful sign that responsible economic management may be returning to the country, Finance Minister Sarath Amunugama said, petrol and diesel would be market priced in the future. In a hopeful sign that responsible economic management may be returning to the country, Finance Minister Sarath Amunugama said, petrol and diesel would be market priced in the future. The minister said government has already spent Rs 8000 mn on the fuel subsidy.

Removing the automatic pricing formula or the so-called ‘plug’ to the world economy was a key promise of the UPFA government.

This encouraged consumption, and created more demand for fuel. Ad hoc price increases then led to sudden rises in transport prices.

The Minister is hoping to introduce a scheme to help the public transport sector and three-wheelers.

But electricity prices also remained heavily subsidized, due to its dependence on imported oil.

Minister Amunugama said it made no sense to sell power, below cost, especially to large consumers.

The minister also made reference to the previous government acting to privatize state owned institutions hastily (kadimudiye) which some analysts interpret as a so