Fuel prices to be cut again

Rajmi Manatunga

COLOMBO: Fuel prices are likely to go down once again with the Government expecting a further reduction in international crude oil prices.

Petroleum and Petroleum Resources Minister A.H.M. Fowzie told the Daily News that the Government was planning to slash fuel prices again this month in a bid to cushion the impact of the rising cost of living on the public.

"We are anticipating a further reduction in the world crude oil prices this month. When oil could be purchased at a cost lower than earlier we will be able to pass that benefit on to the consumer," he said. Fuel prices were slashed twice during the last two weeks as the world oil price dropped to below 60 dollars a barrel last month hitting the lowest price level for more than six months.

Accordingly, the current (normal) petrol and diesel prices stand at Rs 97 and Rs 62.

Fowzie said that 20,000 metric tonnes of oil were purchased last month for the domestic market.

"We are also expecting another shipment of oil on October 18," he added. Meanwhile, private bus operators yesterday expressed their willingness to further reduce bus fares if the Government brings diesel prices down to Rs 50.

"We are ready to reduce the present bus fare by 5.4 per cent if the diesel price is slashed to Rs 50," Lanka Private Bus Owners' Association President Gemunu Wijeratne said.

The bus operators last month withdrew their demand for a fare hike following the Government's decision to reduce fuel prices.

New York's main contract, light sweet crude for delivery in November, won 44 cents to 60.40 dollars per barrel in electronic deals before the official opening of the US market.

In London, Brent North Sea crude for November delivery won 37 cents to 60.91 dollars per barrel in electronic trading.

Although traders were still concerned about the nuclear test announced by North Korea on Monday, the main issue was growing talk from the Organization of Petroleum Exporting Countries about a supply cut, according to analysts.