Fuel prices: when they go up, they go up; when they go down, they go down

Govt. experts suggest Samaraweera formula be re-introduced

When former Finance Minister, the late Mangala Samaraweera, introduced the pricing formula system for auto fuels (MRP = V1 + V2 + V3+ V4) in 2018, he was ridiculed by the Opposition which replaced it immediately after it took office the following year.

Now, as the Ceylon Petroleum Corporation (CPC) is suffering billions of rupees of losses monthly and facing an imminent fuel price hike in the coming weeks due to the forex crisis and increasing crude oil prices in global markets, the same pundits are coming up with an excuse to re-introduce the same formula which they did away with three years ago.

Senior government

Ministers, including Energy Minister Udaya Gammanpila, called for the re-introduction of a fuel formula compiled by the Finance Ministry and Central Bank of Sri Lanka. The latest to join the “revert to the old formula” club is Justice Minster Ali Sabry.

Trade Unions alleged that the sudden change of heart from the Government to revert to the Samaraweera formula system is to put the tax burden on the shoulders of the people after the Government realised later that it is no longer viable to use public funds to maintain the fuel subsidy in the midst of an acute shortage of dollars to import fuel into the country.