\u201cThe calculation of fuel prices is devoid of any transparency but it is a right of the people to know how much tax they pay for a liter of fuel. Hence, the people have been demanding the government to introduce a price formula that is transparent. However, the government has not introduced such a formula yet. The suspicion arises to many that such a formula is not introduced as the government is unable to justify it before the people. Also, prices could be brought down in a big margin according to the existing price formula, which the people are not aware of,\u201d said the Leader of the JVP Comrade Anura Dissanayaka asking a question under standing orders in Parliament.<\/p>\n
Full text of the question:<\/p>\n
Question asked under order 23\/2 on 28.01.2016<\/p>\n
I would like to draw the attention of this assembly to the difficult situation that has arisen due to not giving the benefits of the dwindling fuel prices in the world market to people in this country.<\/p>\n
At present the prices of fuel is rapidly falling down in the world market. The highest fuel prices in Sri Lanka are recorded during the period from 23.02.2013 to 17.09.2014. The prices of fuel started coming down in the world market from June, 2014. The benefit of the dwindling fuel prices in the world market has not been given to our people properly. The calculation of fuel prices is devoid of any transparency but it is a right of the people to know how much tax they pay for a liter of fuel. Hence, the people have been demanding the government to introduce a price formula that is transparent. However, the government has not introduced such a formula yet. The suspicion arises to many that such a formula is not introduced as the government is unable to justify it before the people. Also, prices could be brought down in a big margin according to the existing price formula, which the people are not aware of.<\/p>\n
It is not necessary to have logical arguments to prove that the benefit of fuel prices should be given to people. It is suffice to compare the price of fuel in June, 2014 when prices in world market started coming down with the price of fuel at the time it is unloaded.<\/p>\n
Ceylon Petroleum Corporation imports fuel based on Platts Analytics in Singapore market. In 2014 a barrel of crude oil was US$108.06. The price of a barrel of 92 octane petrol was US$12.39. When the exchange rate that existed at the time is considered as Rs.130 the price of fuel when unloaded was Rs.98.42. A barrel of diesel was US$121.24 and the price when unloaded was Rs.99.10 a liter. However, with various taxes and other expenditure a liter of petrol was priced at Rs.162 and a liter of diesel at Rs.121.<\/p>\n
Since January, 2016 according to average Singapore Platts Analytics, the price of a barrel of Oman crude oil is US$ 26.81. A barrel of 92 octane petrol is US$ 46.89 and diesel is US$35.18. In relation to these prices and considering that exchange rate of US$ is Rs.145, a liter of petrol at unloading is Rs.42.76. a liter of diesel is Rs.32.08. Even if the handling charge is Rs.10 a liter of petrol could be priced at Rs.52 a liter and diesel at Rs.42. However, petrol is sold at Rs.117 and diesel at Rs.95. The tax and other profits from a liter of petrol is Rs.65 while it is Rs.53 for a liter of diesel. An extra profit of Rs.23 can be earned from a liter of diesel when government taxes are deducted. Indian Oil Company too gets the same profits. It sells 20 million liters of diesel a month. Accordingly, the extra profit IOC gets from selling diesel is Rs.460 million.<\/p>\n
The people should understand the amount they pay unjustly and they should get a just reduction in fuel prices.<\/p>\n
I would expect answers to following questions that arise due to the present situation in fuel prices would be placed before the House.<\/p>\n
1. What is the reason for the increase of the price of a liter of petrol by Rs.65 (125%) and a liter of diesel by Rs.53 (126%)?<\/p>\n
2. How is the increase in prices calculated? Shouldn\u2019t the people made aware why they should pay more?<\/p>\n
3. Since when will the benefit of the reduced prices of fuel in the world market given to our people?<\/p>\n
4. Will a formula for fuel be introduced immediately? If so from when will it be implemented?<\/p>\n
5. When taxes are removed from a liter of diesel or petrol what would be the profit earned by the Corporation?<\/p>\n
6. Do you accept that the same profit is obtained by IOC as well?<\/p>\n
Anura Dissanayaka,<\/p>\n
Member of Parliament<\/p>\n
28.01.2016.<\/p>\n","protected":false},"excerpt":{"rendered":"
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