Sri Lanka fuel prices cannot be cut immediately despite lower global oil rates as old high-cost stocks are still being used, officials say.
Sri Lanka fuel prices cannot be reduced immediately despite falling global crude oil rates because the country is still using fuel stocks purchased earlier at higher prices, Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando said.
The Deputy Minister made the remarks while addressing a special media briefing convened to explain the country’s current economic situation.
Dr. Fernando said the fuel presently being consumed in Sri Lanka was imported several months ago, when international market prices were significantly higher than they are now.
“Until the stocks of fuel purchased at those higher prices are exhausted, there is no possibility of reducing fuel prices in the domestic market,” he said.
However, the Deputy Minister noted that the Government would have room to reconsider domestic fuel pricing once the existing fuel stocks are depleted and new shipments ordered at lower global prices begin to arrive in the country.
Responding to questions from journalists on whether recent fuel shipments received by Sri Lanka had been purchased at lower prices, Dr. Fernando said consumers could not receive the benefit of the global price drop until previously ordered high-cost fuel stocks were first consumed.
“We expect that it will take some time for the fuel purchased at lower prices to reach the consumer. In the future, when prices fall, the Government will pay attention to whether to maintain the concessions already provided at the same level or to further reduce fuel prices,” he further stated.
