Tamil Diplomat

Formula for lower fuel prices soon

Global oil prices continue to tumble with current levels the lowest in over a decade. But Sri Lankans may have to wait longer to benefit.

Ceylon Petroleum Corporation Chairman, T. G. Jayasinghe rules out immediate price cuts but promises a new pricing formula early next year that could bring down prices.

Analysts warn, however, that sharply lower incomes of oil-rich countries could see less migrant labour demand in West Asia on the one hand and, less purchases of tea and other Sri Lankan products exported to those countries.

But industry and shippers are optimistic about the prospect of lower fuel costs leading to lower overall production costs.

Alternate power-based transport, such as hybrid automobiles, and non-fossil energy sources such as solar panels may see some market decline, local trade sources told the media.