Sept 05, 2012 (LBO) – Indian Oil Corporation’s Sri Lanka unit, Lanka IOC has called for a pricing formula for retail fuels which keeps parity with import prices a call that has been echoed by other economists and analysts. “It would help everyone if the Government of Sri Lanka could evolve a long-term pricing formula which will provide for adjustment of duties and levies and revision in prices from time to time based on the international prices, with proviso to insulate consumers wherever required,” Nene told shareholders in the annual report.
“The formula should be such that it provides reasonable margins to the oil companies to invest in energy-related infrastructure, including storage and efficient distribution of petroleum products.”
Makrand Nene said several developing nations have tried to fix retail prices of fuel, as the volatility of global oil prices increased.
“While many of them are resorting to tax and duty structure reforms, and even subsidies, so as to keep the selling prices at affordable levels for the common man, this does not appear to be a viable, long-term solution in the best interest of all the stakeholders,” he said.
“It is not only impacting the economies of several nations neg