The statement made by the Managing Director of the Ceylon Petroleum Corporation, Mayura Netthikumarage, that the recent revision of fuel prices was made in accordance with the price formula currently in effect in the country, has been refuted by a statement made by the Cabinet Spokesperson, Minister Nalinda Jayatissa.
At a media briefing held today (24), the Managing Director of the Ceylon Petroleum Corporation pointed out that only the periods for calculating the price formula have changed in view of the rapid changes in world market prices.
Pointing out that the oil price formula is not at all complicated or strange, the Managing Director stated that it only contains the price at which oil is imported into the country and other costs incurred for it.
He said that the corporation only calculates those costs and submits them to the government, and the final decision is taken by the government.
He pointed out that although the price of oil in the world market was stable for a month in the past, it was possible to calculate the price on a monthly basis, but due to the rapid changes in prices today, those periods have had to be shortened.
Pointing out that the oil price formula is not calculated based on the monthly average value, but on the value of the stocks imported in that month, he said that since the world price is changing rapidly now, it is not possible to wait for a month, but the same formula is being implemented.
However, Cabinet Spokesperson, Minister Nalinda Jayatissa, had stated at the media briefing held today to announce cabinet decisions that it was not possible to act according to the price formula due to the exceptional circumstances prevailing during the recent fuel price revision.
The Minister said that in view of the unusual fluctuation in crude oil prices in the world market, the usual price formula was not used to increase the price this time. He said that although a small change of $4-5 can usually be adjusted to the price formula, the increase in the price of a barrel of crude oil from the $70-78 level to $130 cannot be controlled by any formula.