Minister hints of fuel price cut

Rasika Somarathna and Subashini Senanayake

*Crude oil to be purchased directly

*Cost reduction to be passed on to public

The Government is planning to reduce fuel prices further within the next few months by purchasing crude oil directly from producing countries. Petroleum Resources Development Minister Susil Premajayantha yesterday said that negotiations were underway to directly purchase crude oil from producing countries, thereby reducing the import cost.

The benefit of this cost reduction would be directly passed on to the public in the form of a fuel price reduction in the retail market, he added.

Minister Premajayantha told the media that although there were price fluctuations during the last 11 months in the global markets the Government had not resorted to a price increase. He said that the Government had taken steps to inform the oil producing countries through the relevant embassies of its desire to purchase crude oil directly from them.

Negotiations in this regard would be initiated shortly with a special delegation to visit these countries, he noted.

He also stressed that the Government had no plans to increase fuel prices in the near future.

Minister Premajayantha yesterday also launched ‘Hyrax’, a new vehicle lubricant product of the Ceylon Petroleum Corporation.