The proposed energy pricing formula, which has been in the planning stages for several months, is likely to be delayed as the Ministries of Petroleum Resources Devolopment and Finance yet to finalize the draft before being presented for Cabinet approval.
The interim Government which was formed after the Presidential election in January this year announced that it would be introducing pricing formula for fuel. The then Power and Energy Minister, Patali Champika Ranawaka earlier said that the formula would be finalized and implemented this month.
However, Minister of Petroleum Resources Devolopment, Chandima Weerakkody told The Nation Gain that the draft of the formula would only be finalized by the end of this month.
He stated that the officials of the Treasury and the Petroleum Resources Devolopment Ministry were continuing to discuss the formulation process. “The formula is being tweaked frequently. We hope to finalize the draft in two weeks and then present it to the Cabinet to be approved,” Weerakkody said.
The Minister pointed out that the formulation of the pricing mechanism was being carried out with the participation of all stakeholders including dealers and the public with their inputs. “Therefore, we have to take into consideration their concerns and ideas while formulating the mechanism. In addition, we need to ensure that the formula is comprehensively done before it is presented to the Cabinet and implemented. It cannot be a half-baked formula,” he added.
Earlier, the Ministry officials stated that the formula would take into account the oil price fluctuation in the world market. Thereby, it was also decided to revise the formula every six months in order to keep with the global price trends.