Mangala reveals fuel pricing formula

Oct 18, 2018 (LBO) - Sri Lanka's Finance Minister Mangala Smaraweera reveled to media the recently introduced fuel price formula calculation method following repeated calls for it. "The Maximum Retail Price (MRP) of auto fuels has been established as follows MRP = V1 + V2 + V3 + V4," he told reporters in Colombo a short while ago. The pricing formula has been constructed by a technical committee based on the following components: a) V1 - Landing cost - includes Singapore Platts price per barre, Weighted Average Premium per barrel, loss due to the evaporation and exchange rate (US$) / LKR are applied b) V2 - Procesessig cost - includes local port charges, transport cost, dealers margin including losses due to evaporation of dealers and stock holding cost  c) V3 - Administrative cost - include administrative expenses including personal cost, depreciation and other cost elements if any d) V4 - Taxation - includes customs import duty, excise duty, ports and airports development levy and nation building tax The minister add that the tax applicable for Diesel would be 25.48 rupees and for Petrol 53.68 rupees. "Our taxes are far less than the regional ones." For Diesel in India the tax component is 33 percent, Pakistan 58 percent while in Sri Lanka it's 19 percent. Sri Lanka’s government increased the prices of petrol and super diesel on 10th October in keeping with the fuel pricing formula but in order to reduce the adverse effect on the people especially the Transport and Fisheries sector has decided not to increase the price of auto diesel. The price of 92 octane petrol was increased by six rupees to 155 rupees a litre while 95 octane petrol went  up by eight rupees to 169 rupees a litre with super diesel also up by eight rupees to 141 rupees a litre. Sri Lanka's fuel price is lower then some of the South Asian countries with the price of the price of one litre of Petrol (92-Octane) in Bangladesh at 159 and India 169 rupees. In 2015 the price of a litre of 92-octane petrol was reduced from 157 to 117 rupees while the price of 95-octane petrol has been come down from 158 to 128 rupees. (UPDATED)  fuel Pricing Formula