Fuel Price Is Coming Down. Do Sri Lanka Need Price Reduction ?

[gayanath]

Fuel Price is coming down in international market. Do we (Sri Lanka) need local price reduction ?

Shall we discuses this in comprehensively.

Your great ideas are most welcome.

[iRage]

Fuel Price is coming down in international market. Do we (Sri Lanka) need local price reduction ?

Shall we discuses this in comprehensively.

Your great ideas are most welcome.

What happened to the dynamic pricing formula the govt was talking about last year ? Their claim was that the formula would account for price variations in the global oil market and dynamically adjust the local prices...

[rija]

What happened to the dynamic pricing formula the govt was talking about last year ? Their claim was that the formula would account for price variations in the global oil market and dynamically adjust the local prices...

Some say that it has not been approved by the cabinet yet.

[PreseaLover]

It would be a miracle if the government reduce the fuel cost according to the global market... we all know how the vehicle prices went up with the new budget.. total opposite to what they vow'ed before the elections...

[asrock]

Some say that it has not been approved by the cabinet yet.

The finance Ministry has requested one more week to review the formula.

[gayanath]

My intention was to discuss this deeply as car (vehicle) owners as well as a nation, with your valuable comments. Let me elaborate this further.

If prices come down,

+ points

1. Cost of public transportation will come down - however its doubtful whether the bus owners, taxi owners and three wheel drivers will reduce the price to transfer the gain to general public or will put it in to their pocket.

2. For exporters - Cost of production will reduce - this is very important point as they have to give competitive price to the world

3. For local consumable manufactures (small to mega) - Cost of production will reduce - Although consumable price could be reduced its too doubtful whether they transfer the benefit

4. Cost to CEB will be reduced for electricity generation - This is the most important to entire nation and benefit will transfer to all.

- points

1. All are discussing how strengthening the public transport in Sri Lanka. fuel price reduction will encourage to use own transportation rather than public transportation.

2. Increasing city traffic will increase the fuel consumption as well as unrest/discomfort to all.

3. discourage to use renewable energy and alternate energy resources.

4. 2015 recorded as the year for highest accidents. It will increase further.

5. Manufactures will not try to find alternate energy sources.

6. Finally the increasing consumption will added to the environment.

What happen if government will give concessionary price to CEB and exporters only without reducing fuel prices.?

Can't we built good hospital, university, etc, and increase the budget to purchase medicine, education, public transportation by the amount gained from fuel price difference without reducing it. ??

Edited January 17, 2016 by gayanath

[PreseaLover]

We need a bottle to discuss this

[aruntantan]

Mark my word : Nothing happens if it goes to low as 10$, if it rises more than 50$ this time, definitely fuel prices will go up. :speechless-smiley-004:

Everything done related to finance by Raina and Sukara has failed.. :sad-smiley-066:

[Crishan]

My intention was to discuss this deeply as car (vehicle) owners as well as a nation, with your valuable comments. Let me elaborate this further.

If prices come down,

+ points

1. Cost of public transportation will come down - however its doubtful whether the bus owners, taxi owners and three wheel drivers will reduce the price to transfer the gain to general public or will put it in to their pocket.

2. For exporters - Cost of production will reduce - this is very important point as they have to give competitive price to the world

3. For local consumable manufactures (small to mega) - Cost of production will reduce - Although consumable price could be reduced its too doubtful whether they transfer the benefit

4. Cost to CEB will be reduced for electricity generation - This is the most important to entire nation and benefit will transfer to all.

- points

1. All are discussing how strengthening the public transport in Sri Lanka. fuel price reduction will encourage to use own transportation rather than public transportation.

2. Increasing city traffic will increase the fuel consumption as well as unrest/discomfort to all.

3. discourage to use renewable energy and alternate energy resources.

4. 2015 recorded as the year for highest accidents. It will increase further.

5. Manufactures will not try to find alternate energy sources.

6. Finally the increasing consumption will added to the environment.

What happen if government will give concessionary price to CEB and exporters only without reducing fuel prices.?

Can't we built good hospital, university, etc, and increase the budget to purchase medicine, education, public transportation by the amount gained from fuel price difference without reducing it. ??

Dude, you have answered your own question/discussion in the last paragraph. Also I assume you must be aware that CPC is still running at a loss.

[matroska]

My intention was to discuss this deeply as car (vehicle) owners as well as a nation, with your valuable comments. Let me elaborate this further.

If prices come down,

+ points

1. Cost of public transportation will come down - however its doubtful whether the bus owners, taxi owners and three wheel drivers will reduce the price to transfer the gain to general public or will put it in to their pocket.

2. For exporters - Cost of production will reduce - this is very important point as they have to give competitive price to the world

3. For local consumable manufactures (small to mega) - Cost of production will reduce - Although consumable price could be reduced its too doubtful whether they transfer the benefit

4. Cost to CEB will be reduced for electricity generation - This is the most important to entire nation and benefit will transfer to all.

- points

1. All are discussing how strengthening the public transport in Sri Lanka. fuel price reduction will encourage to use own transportation rather than public transportation.

2. Increasing city traffic will increase the fuel consumption as well as unrest/discomfort to all.

3. discourage to use renewable energy and alternate energy resources.

4. 2015 recorded as the year for highest accidents. It will increase further.

5. Manufactures will not try to find alternate energy sources.

6. Finally the increasing consumption will added to the environment.

What happen if government will give concessionary price to CEB and exporters only without reducing fuel prices.?

Can't we built good hospital, university, etc, and increase the budget to purchase medicine, education, public transportation by the amount gained from fuel price difference without reducing it. ??

I dunno ... your points are valid but this being the country that is and the fact this is being run by Govt which is highly incompetent (yeah all our governments have been )

I can't honestly expect things to change. There MIGHT be a very marginal decrease.

IF Cost of public transport is reduced that too will be reduced only marginally - not enough to make an impact.

As Someone mentioned CPC is running at a loss we should not forget that.

We need a bottle to discuss this

Ask weda mahattaya to give you a bottle of arishte. that's the only bottle you'll be getting.

[sathyajithj99]

I dunno ... your points are valid but this being the country that is and the fact this is being run by Govt which is highly incompetent (yeah all our governments have been )

I can't honestly expect things to change. There MIGHT be a very marginal decrease.

IF Cost of public transport is reduced that too will be reduced only marginally - not enough to make an impact.

As Someone mentioned CPC is running at a loss we should not forget that.

Ask weda mahattaya to give you a bottle of arishte. that's the only bottle you'll be getting.

I'm pretty sure PL Is getting enough of those bottles @ matroska LOL

[PreseaLover]

Ask weda mahattaya to give you a bottle of arishte. that's the only bottle you'll be getting.

I'm pretty sure PL Is getting enough of those bottles @ matroska LOL

Haha had good 3 bottles of arishte for the past 3 months and medicine is over... I asked him if it's ok to have a shot once a week and he said ok

[B2Spirit]

There have been mentions here and there that Petrol prices will not be brought down regardless of the World Market prices whereas other fuel types may reduce.

[bycap]

I don't think it is easy to replicate the world market's price if there is a sudden variation. That is because of the complex agreements like hedging are playing around. Even today ( or tomorrow or within this week) price is reduced, predicted price for the agreement could be higher.

Besides this is an opportunity to the government to settle any loss of CPC or whatever.

I'm curious to know what happened to the huge loss incurred due to previous hedging agreement.

[RViji]

There has been and there is enough corruption and wastage at CPC . such that even if fuel comes free from the sky,and they sell at current prices,they will run at a loss.if they miraculously make some profit,it will be used up to cover the government expenditures such as development loan premiums,pension,healthcare.so let's stop dreaming. We have no sustainable systems for above mentioned government services,where the user makes a contribution without becoming a burden on the tax income.

[Watchman]

I dunno ... your points are valid but this being the country that is and the fact this is being run by Govt which is highly incompetent (yeah all our governments have been )

I can't honestly expect things to change. There MIGHT be a very marginal decrease.

IF Cost of public transport is reduced that too will be reduced only marginally - not enough to make an impact.

As Someone mentioned CPC is running at a loss we should not forget that.

Ask weda mahattaya to give you a bottle of arishte. that's the only bottle you'll be getting.

I disagree with you. It's not always the government's fault. They take a lot of good decisions which will yield benefits in the long run but a bit bitter at the present. And thanks to an opportunistic opposition trying to destabilize things every other day, the government cant help buy play into popularity.

Same thing happened in 1977, when the then government was thrown out in a landslide because their efforts to jump start a self-sustainable economy was too harsh.

[B2Spirit]

My guess is they will keep playing the "Fuel price formula is not yet finalized" tune as long as they can get away with it.

[The Stig]

<blockquote class='ipsBlockquote'data-author="Watchman" data-cid="288724" data-time="1453341597"><p>

<br />

I disagree with you. It's not always the government's fault. They take a lot of good decisions which will yield benefits in the long run but a bit bitter at the present. And thanks to an opportunistic opposition trying to destabilize things every other day, the government cant help buy play into popularity.<br />

<br />

Same thing happened in 1977, when the then government was thrown out in a landslide because their efforts to jump start a self-sustainable economy was too harsh. </p></blockquote>

Exactly, typical Sri Lankan mentality. Everyone needs all the luxuries and benefits in the world but no one is willing to work hard and make sacrifices to achieve it.

[matroska]

I disagree with you. It's not always the government's fault. They take a lot of good decisions which will yield benefits in the long run but a bit bitter at the present. And thanks to an opportunistic opposition trying to destabilize things every other day, the government cant help buy play into popularity.

Same thing happened in 1977, when the then government was thrown out in a landslide because their efforts to jump start a self-sustainable economy was too harsh.

While I was not alive in 1977 I have heard and read about the economic reforms. Theoretically if the people at that time went through with it we would probably have had a self sustained economy later that part is true. BUT people alive in 1977 will also tell you that individuals with connections would get what they wanted. Import permits were given out to them. I have also heard (I'm looking for a cite-able source) that a particular person who had connections to the rulers at that time was able to import animal food in large quantities for his farms. Maybe the inequality was a contributing factor for peoples bitterness.

The problem in SL is even though a govt would come up with a 'good decision' there would always be self-interests and personal agendas involved with it. That has always been the case.

Coming back to the topic at hand the current instance of govt (from what they have done so far) doesn't seem to be one that is particularly capable of coming up with anything that would benefit the country in the long run. I hope they prove me wrong.

Edited January 21, 2016 by matroska

[Watchman]

While I was not alive in 1977 I have heard and read about the economic reforms. Theoretically if the people at that time went through with it we would probably have had a self sustained economy later that part is true. BUT people alive in 1977 will also tell you that individuals with connections would get what they wanted. Import permits were given out to them. I have also heard (I'm looking for a cite-able source) that a particular person who had connections to the rulers at that time was able to import animal food in large quantities for his farms. Maybe the inequality was a contributing factor for peoples bitterness.

The problem in SL is even though a govt would come up with a 'good decision' there would always be self-interests and personal agendas involved with it. That has always been the case.

Coming back to the topic at hand the current instance of govt (from what they have done so far) doesn't seem to be one that is particularly capable of coming up with anything that would benefit the country in the long run. I hope they prove me wrong.

Quite the contrary. Purely on an automotive perspective,

They cancelled the permit system which was quite a drain on the economy; they got shit about it. And the good-for-nothing GMOA went to the extent of risking people's lives over it.

They are trying to discourage vehicles coming into colombo; still getting shit about it

They tried to implement parking meters; not sure if it was implemented, but they got shit about it.

While you cant build a monorail or a luxurious public transport medium overnight some level of preventive measures were necessary.

[matroska]

Quite the contrary. Purely on an automotive perspective,

1.They cancelled the permit system which was quite a drain on the economy; they got shit about it. And the good-for-nothing GMOA went to the extent of risking people's lives over it.

2.They are trying to discourage vehicles coming into colombo; still getting shit about it

3.They tried to implement parking meters; not sure if it was implemented, but they got shit about it.

While you cant build a monorail or a luxurious public transport medium overnight some level of preventive measures were necessary.

1. I agree with this the cancellation on the permits was a good thing. So too the car price hikes which (if their sole purpose was to limit the flow of cars to the country) was a good thing cos there are just too many damn cars on the road.

2. Yes it's a good thing but what has been done to improve the public transport?(Yes it's early days but there's not even a semblance of any action being taken for this not expecting a luxury public transport system AT LEAST have a level of acceptability when it comes to public transport. No need of mono rail just yet - maybe improve the existing trains cos some trains look like tetanus on rails)

3. AFAIK not yet implemented.

and as i remember they retracted some of their budget proposals at the slightest pressure.

Remember the proposed price hikes on cars - one day it's on , next day it's off, then the next day it says for LC's opened after this date, then it's completely off does that look like the actions of authorities who know what they are doing or who have a clear vision about what they are going to do?

Do you honestly feel there is foresight in the governments decision making? Or are they just 'patching up' things on the go? (short term preventive measures) At least that's what the impression i got. (that is the impression all govt's including the previous one have given me so far)

IMHO nothing really has changed.

Edited January 21, 2016 by matroska

[dhanuFB15]

Fuel Price is coming down in international market. Do we (Sri Lanka) need local price reduction ?

Shall we discuses this in comprehensively.

Your great ideas are most welcome.

Theoretically it should happen, but unfortunetly in siri-lanka aka amuthu Ete all the happen in reverse way preferences of idiot politicians, This government want to reduce oil price withing there 100 days what they do was reduce fuel for votes(any how it's good) . Now election is over why they reduce it again.