Crude Oil Prices Plummet Globally, But Local Fuel Prices Remain Steady

COLOMBO (News 1st); Despite a significant drop in global crude oil prices, the Ministry of Power and Energy states that it is challenging to promptly reduce local fuel prices accordingly.

Ministry Secretary Sulakshana Jayawardena explained that according to the government's approved procurement process, fuel price reductions in the country must be implemented systematically.

Sri Lanka imports refined fuel based on the Singapore benchmark price. Therefore, he said the country must distribute fuel according to the prices determined under this benchmark.

He further stated that only about 35% of the total fuel requirement is refined domestically from imported crude oil. As a result, the decline in global crude oil prices does not significantly influence the price adjustments of refined fuel in Sri Lanka.

However, Professor Wasantha Athukorala of the Department of Economics and Statistics at the University of Peradeniya mentioned that crude oil prices have fallen by approximately 27% compared to last September.

In September, the average price of a barrel of crude oil in the Brent market was USD 94.