Sri Lanka government as the sole authority of Ceylon Petroleum Corporation is now compeled to bring down the prices of fuel as world oil prices were on track for a decline after Saudi Arabia shocked the market by launching a price war against onetime ally Russia.
Minister of Power and Energy Mahinda Amraweera disclosed that he will put forward a proposal to revise fuel prices pass the benefit of the world oil price decline at present.
US oil prices crashed as much as 34% to a four year law of $27.34 a barrel as traders brace for Saudi Arabia to flood the market with crude in a bid to recapture market share.
Crude was recently trading down 27% to $30.04 a barrel. Brent crude, the global benchmark, plunged 26% to $33.49 a barrel. Both oil contracts are on track for their worst day since 1991, according to Refinitiv a global provider of financial markets data.
Russia refused to go along with OPEC's proposal to rescue the coronavirus-battered oil market by further cutting production at a meeting in Vienna on Friday. The standoff left the oil industry shell-shocked and sparked a 10 percent plungee in oil prices Friday.
Treasury Secretary, S R Attygalle disclosed some times back that they are following a cost reflective method to determine the fuel prices in the country as the fuel price formula of the previous regime is no more.
If there is such a method of calculating the local fuel price then the Finance Ministry will have to announce a reduced price for fuel passing the benefit of world oil price drop at present, they said.
The present opposition has no concern on the current economic trends and its impact on the people as their main issue is the leadership struggle and internal party conflicts ,economic analysts said.
They added that the main opposition party is not worried about the government's economic management and the people’s sufferings at all.
(LI)