The Chairman of the Public Utilities Commission of Sri Lanka, Janaka Ratnayake argues that rather than the Rs. 20 reduction that was announced last night(17), the price of fuel should be cut even more.
In a statement, Janaka Ratnayake demanded the implementation of an open fuel price system.
“Petrol prices dropped by 20 rupees last night (17). The price of gasoline and diesel can be lowered by 150 rupees, as I had mentioned two weeks prior. These details were made public based on data from customs that showed the true costs of fuel imported into Sri Lanka. The exact prices have not yet been disclosed by energy sector representatives.
Fuel prices should be determined in a transparent manner because they have a significant impact on Sri Lanka’s economy. According to the prices on the present international market, the cut that went into effect last night is insufficient.
The local price of a liter of fuel can be decreased by at least 100 rupees, based on the data from the present market and the actual costs Ceylon Petroleum Corporation paid for fuel imports, he added.
Ratnayake recommended that the fuel price formula be applied in a timely manner to prevent market abnormalities.
Mr. Ratnayake further draws attention to the fact that fuel prices that are not based on reasonable costs have had a significant impact on power tariffs.
“Crude oil prices are currently on the decline in the global market. To benefit from this, crude oil may be continuously supplied to the nation’s refineries, and all fuel types necessary for the production of electricity can be offered at the most affordable costs, he said.
The Sri Lanka Electrical Act gives the Public Utilities Commission of Sri Lanka the authority to completely control the electricity sector. In order to oversee the petroleum sector, the Commission was established in 2006.
The legislation needed by PUCSL to control the sector, however, has not yet been approved by Parliament. As a result, neither the Commission nor any other regulatory agency is authorized by law to get involved in the oversight of the petroleum sector.