A link with the fuel pricing formula to electricity tariffs or one that would change prices every three months based on global prices is being proposed the Minister said at a media conference held recently.

The proposal to link the fuel pricing formula to electricity tariffs is due to 10-12 percent of electricity being generated through fuel, especially power plants using heavy fuel oil, Minister Ranawaka added.

However he said although we will have a transparent fuel pricing formula it will not be like India’s open liberalized energy market. It will be a regulated state-run type of system that would benefit both the consumer and the utility, he added.

Meanwhile, the Minister said there will be no price hike in fuel, shortage in the country or privatization of the Ceylon Petroleum Corporation (CPC) and requests people not to be misled by false propaganda.

Since January 1 up to March 31 there is a surplus of 17 billion rupees as pre tax profit of CPC and the government is determined not to make a loss, the Minister emphasised.