The fuel price had to be increased in response to the prevailing foreign reserve crisis, said Cabinet Spokesman and Mass Media Minister Dullas Alahapperuma, speaking to the briefing held today (21).
The increase in fuel prices will have an impact of 03 per cent on the country’s inflation, the Minister added.
An amount of US$350 – 400 million has to be spent every month on fuel imports leading to the rapid depletion of the country’s foreign reserves, Alahapperuma pointed out, adding that the need for a ‘fuel price formula’ to tackle the situation has been discussed in the face of the fuel price surges.
He admitted that he mocked late former Minister Mangala Samaraweera’s original idea of a fuel price formula to tackle such situations, and that it would be more appropriate to allow fuel prices to fluctuate compared to the ups and downs of the global market prices.
MIAP