Fuel prices to go up monthly for next 4 months

The government is insinuating that the fuel prices could go up every month continually for the next four months, according to ‘Ravaya.’

Such a possibility was suggested by finance minister Mangala Samaraweera when he said at a media briefing on October 09 and again on the following day in parliament that world crude prices would not be reduced until February next year.

Also, prime minister Ranil Wickremesinghe told the House on October 10 that world crude prices could be increased to 90 dollars a barrel by November.

He also said there would be a question of supplying to the demand, owing to US sanctions on Iraq as consumption could go up during winter.

The prices and the pricing formula

The CPC last week raised the per litre price to Rs. 155 for Petrol 92, Rs. 169 for Petrol 95, Rs. 123 for Auto Diesel and Rs. 141 for Super Diesel.

The Lanka IOC prices for same are Rs. 155, Rs. 172, Rs. 129 and Rs. 141 respectively.

It is likely that the petrol price could go up to Rs. 200 per litre before the end of the year.

The CPC Employees Union says a reduction of taxes on fuel could mean petrol can be priced at Rs. 88 per litre and at Rs. 103 for diesel.

The government says it raises the fuel prices monthly in accordance with a hitherto undisclosed pricing formula.

However, Samaraweera says he too, does not understand how that formula works.