Petroleum Minister too wants fuel price revision formula disclosed


By Saman Indrajith

Petroleum Resources Development Minister Arjuna Ranatunga told Parliament, on Wednesday, that it was not his duty to explain the fuel price revising formula to the country.

The onus was on the Ministry of Finance to reveal the formula, Minister Ranatunga said in answer to a question raised by NFF MP Jayantha Samaraweera.

 Ranatunga said that he, too, hoped that the formula would be disclosed to the public very soon.

 Minister Ranatunga said that his ministry had received several RTI applications demanding information about the fuel price formula. All decisions pertaining to the fuel price formula were taken by the Finance Ministry and the Treasury.

The Minister expressed his confidence that Finance Ministry would announce the details of the fuel pricing formula shortly. He said he hoped that the formula would be used to reduce fuel prices when the world prices dropped and to increase when there was a hike in oil prices in the world market. A committee comprising officials of the General Treasury and the Petroleum Resources Development Ministry would implement the fuel pricing formula and give recommendations on increasing or decreasing the fuel prices, Ranatunga said.  

Responding to another query by MP Samaraweera on taxes charged by the government on kerosene, Minister Ranatunga said that Ceylon Petroleum Cooperation incurred a loss when selling kerosene below cost. According to the Minister, the CPC spent Rs 97. 89 to produce a litre of kerosene, while it sold the same at Rs 70.

Minister Ranatunga also said that no tax was charged by the government on importing of kerosene.

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