Cabinet Spokesman Nalinda Jayatissa stated that there may not be an increase in fuel prices on 1 April, while also maintaining that the fuel pricing formula remains in operation—raising questions over an apparent inconsistency in the Government’s position.

The remarks, made at the Cabinet media briefing, prompted a series of questions from journalists regarding the status and application of the pricing mechanism.

The exchange unfolded as follows:

Question: Is the fuel price revision still being carried out according to the pricing formula?

Answer: Generally, the pricing formula can be applied when there are only minor fluctuations in the global market. But at this moment, it cannot be done. That is how we acted previously. When there is a difference of two or three rupees, it is manageable. But when a barrel of oil that was around $70 rises to $130, it cannot be adjusted in that manner.

Question: Does that mean the pricing formula is not in operation?

Answer: The pricing formula is in operation. However, recent adjustments were not made strictly according to the formula. The increase in crude oil and refined fuel prices did not occur in line with the formula.

Question: When this was introduced, then Minister Mangala said it could be adjusted to any situation in the global market. Therefore, saying it cannot be adjusted now is incorrect. Perhaps you are not aware of that?

Answer: That was done during periods when there were only slight fluctuations in the global market. Due to our high fuel consumption, the country is currently running on stocks imported at the beginning of March.

Question: Fuel prices were revised on 3 March. So, there will be no increase on 1 April, correct?

Answer: There may not be an increase.