Fuel – Price reduction if world market trends continue

If the fuel price in the global market continues to drop, the government will consider a price reduction in the domestic market, Power, Energy, and Commuter Transport Management Minister Mahinda Amaraweera said yesterday.

“We have observed that there is a drop in fuel prices in the international market as a result of the coronavirus epidemic. But that alone is not sufficient to reduce fuel prices in the domestic market. However, the government will not hesitate to pass the benefit to the consumer if and when the price of fuel continues to drop in the global market,” he said.

The minister said though the country was experiencing a drought right now, the CEB had no intention of imposing a power cut. He said the CEB had uncured a loss of Rs.8 on each unit sold to the consumer because a unit of electricity was purchased from the private power at Rs.24 while the selling price of a unit of electricity was Rs.16.

The minister told the media after accepting the 12 buses renovated by the LECD on behalf of the SLTB and pointed out that the Gotabaya Rajapaksa government did not want to run state owned enterprises on Treasury subsidies.

“Loss making state ventures are a burden to the public as they are run on Treasury subsidies. The President wants to bring loss making state ventures at least to break even level in a year. If the top management and employees fail to do that, the government has no choice but to liquidate the establishment,” he said.

LECD technical officers said they had the capability and technical know-how to produce locomotive spare parts imported from China at a cost of Rs.4.5 million for Rs.600,000.

The minister agreed to offer the contract to produce spare parts for trains and buses to the LECD hereafter and pledged that a part of the income generated by the LECD would be set aside to pay incentive bonus to employees while a bigger profit bonus would be paid to LECD employees if and they increase the profits of the company.