Why has the government not reduced oil prices in line with global oil price reduction?

by Staff Writer 16-02-2020 | 9:03 PM

COLOMBO (News 1st):- According to data indicated from the world market the price of a barrel of crude oil has decreased by US$ 7. In the US market, the current price of a crude oil barrel is USD 52.05 while the price of a barrel of Brent crude oil is USD 57.32. Owing to the tensions in the Middle Eastern region, since the 6th of January 2020, the price of a barrel of crude oil in the American market was stated as USD 63.27 while the price of a barrel of Brent crude oil stood at USD 68.24. Accordingly, when analyzing the prices of the world market, it is evident that the price of crude oil in the world market has returned to normalcy. Speaking on the matter, in parliament today, UNP MP Mujibur Rahman said;

"Since the time we were in power until now, the price of a barrel of crude oil has reduced by USD 14. At present, they have increased the price of oil by Rs. 12. They can easily take into account the reduction in price in the international market and reduce the price by Rs. 12. They are not doing that."

Minister of Transport Service Management, Power and Energy, Mahinda Amaraweera said;

"There is a slight reduction in the price of oil. We believe that occurred as a result of the Coronavirus issue in China. We sold diesel at a loss of Rs. 12. If this situation continues we are prepared to reduce the price of fuel. The President and the Prime Minister have directed their attention towards it."

UNP MP, Mujibur Rahman says;

"When we introduced the pricing formula they said it was useless. What is their pricing formula? They have a pricing formula. That is the formula for scamming. They are not willing to pass on the reduction in the price of oil in the global market, to the people."

Minister of Transport Service Management, Power and Energy, Mahinda Amaraweera in response said;

"If there was a pricing formula in place, it would have reduced by around Rs. 2. That too would have happened after increasing it by Rs. 12 rupees in the previous month. We do not need a formula, we will pass on the advantage to the people."