New fuel price mechanism in the offing

A retail price mechanism for fuel will be introduced during the first quarter of 2016, Petroleum Minister Chandima Weerakkody told Parliament yesterday.

Responding to an oral question raised by MP Buddhika Pathirana, the Minister however assured that this was not aimed at increasing prices.

The Minister said the Ceylon Petroleum Corporation had managed to recover a huge amount of debts which were due from various institutions.

He said SriLankan Airlines owed Rs 22.1 billion, Mihin Lanka Rs 1.4 billion, Railways Department Rs 1.1 billion, Sri Lanka Army Rs 806 million, Navy Rs 429 million and Police 62.78 million to the Ceylon Petroleum Corporation as at May 30 this year.

He said the total outstanding due from various institutions was Rs 477 billion while it would be reduced to approximately Rs 277 billion by the end of this year.