Fuel prices to be reduced by a huge margin next month: Kanchana

By Ajith Siriwardana  

Fuel prices would be reduced by a considerable amount at the routine fuel price revision according to the fuel price formula next month, Power and Energy Minister Kanchana Wijesekara said yesterday.  

He told Parliament that the government would be able to procure fuel shipments at a lower and competitive bidding after the IMF bailout was received.  

The Minister said that there were practical issues in opening LCs and obtaining credit facilities earlier as Sri Lanka could not give a guarantee for the fuel suppliers.   “We could not open LCs and obtain credit facilities when procuring fuel shipments. After the IMF bailout, we will be able to procure fuel shipments at lower and competitive biddings. We will be able to obtain a long-term credit facility as well. Fuel prices at the global market seem to be going up these days and the rupee is also being appreciated against the US Dollar. Having considered all these factors, fuel prices will be reduced by a considerable amount which could be felt by the people,” he said.  
The Minister said steps would be taken to reduce electricity tariffs as well by December this year.  

He said the restructuring plan of the CEB and CPC would be submitted in Parliament within a month. 

• Steps would be taken to reduce electricity tariffs as well by December this year