Power and Energy Minister Kanchana Wijesekara told Parliament yesterday that fuel prices would be reduced considerably according to the fuel price formula at the next fuel price revision, due in April.
The Minister said that the government would be able to procure fuel shipments, at lower prices, during competitive bidding, with the receipt of the IMF bailout.
There had been practical issues, and problems, in opening Letters of Credit, and obtaining credit facilities, in the recent past, as Sri Lanka could not give a guarantee to fuel suppliers, Minister Wijesekara said.
“We could not open LCs and obtain credit facilities when procuring fuel. After the IMF bailout, we will be able to procure fuel at lower prices during competitive biddings. We will be able to obtain a long-term credit facility as well. Fuel prices in the global market seem to have declined and the rupee has also gained strength against the US Dollar. Having considered all these factors, fuel prices will be reduced by a considerable margin which could be felt by the people,” he said.