By : Puli
April 09, LNW (Colombo): The government is preparing to introduce a new pricing formula for fuel and electricity, a move that has sparked concern over its potential impact on households already facing economic pressure.
Deputy Minister of Finance and Planning, Anil Jayantha Fernando, confirmed that the existing pricing mechanism will be revised. He pointed to the recent escalation in global fuel prices – linked to ongoing tensions in the Middle East – as a key reason for the change.
According to the Deputy Minister, international fuel prices have increased by 20% to 35%, placing strain on the current domestic pricing system. He emphasized that the existing formula is no longer sustainable under such volatile global conditions, making a new framework necessary to maintain stability in the energy sector.
However, the proposed reform has drawn criticism. Analysts and consumer advocates warn that altering the pricing mechanism could increase costs for the public, particularly if safeguards are not effectively implemented.
Government officials say the new system will include measures to protect low-income groups, but doubts remain about how well these protections will work in practice.
The government also intends to present the proposed pricing model to the International Monetary Fund, indicating that the reform may be linked to broader economic commitments.
With details of the new formula yet to be released, uncertainty continues over whether the changes will help stabilize the economy—or add further financial strain on citizens.
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