Sri Lanka to lose Rs65bn from fuel price cut: Energy Minister

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Sri Lanka’s government will lose 65 billion rupees revenue per year by reducing the fuel prices from tax cut, Champika Ranawaka, Minister of Energy said today.

He said the manifesto promised only a 40 billion rupee tax cut.
Sri Lanka’s energy prices have not been brought down even though the international prices fell.

The Minister said fuel and electricity prices would be decided by formula and electricity prices will be revised in June.

Source: LBO

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Sstar wrote:Sri Lanka’s government will lose 65 billion rupees revenue per year by reducing the fuel prices from tax cut, Champika Ranawaka, Minister of Energy said today.

He said the manifesto promised only a 40 billion rupee tax cut.
Sri Lanka’s energy prices have not been brought down even though the international prices fell.

The Minister said fuel and electricity prices would be decided by formula and electricity prices will be revised in June.

Source: LBO

So the decision to reduCe prices was not based on a formula this time but on mere GE (General Election) agendas. So far for good governance Policy decisions should be always be for the long term benefit. The formula should be used consistently and transparently and not at the discretion of a minister or any of his stooges!

Evil or Very Mad

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There are so many indirect gains and incomes that the government would recieve
Mentioned a few here http://forum.srilankaequity.com/t40724-are-you-helping-the-market-please-read

but il list some again
1. Sri Lankan airlines, fuel saving will be saving for government
2. Railways fuel saving will be in favour of government
3. CTB and other government ministries fuel saving will be a gain for the government
4. as of now i know many people who went and got full tanks of fuel, people are gonna increase consumption
5. Increased comsumer spending as salary increases, increase in taxable revenue for the government
6. decreased fuel cost helps on the ease of doing business ranking beyond regulatory functions, increased business increases revenue of the economy
from children to every one there is a benefit. whatever the government loses 80% can be gained, rest would do with future hedging deals

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Sunnyside wrote:There are so many indirect gains and incomes that the government would recieve
Mentioned a few here http://forum.srilankaequity.com/t40724-are-you-helping-the-market-please-read

but il list some again
1. Sri Lankan airlines, fuel saving will be saving for government
2. Railways fuel saving will be in favour of government
3. CTB and other government ministries fuel saving will be a gain for the government
4. as of now i know many people who went and got full tanks of fuel, people are gonna increase consumption
5. Increased comsumer spending as salary increases, increase in taxable revenue for the government
6. decreased fuel cost helps on the ease of doing business ranking beyond regulatory functions, increased business increases revenue of the economy
from children to every one there is a benefit. whatever the government loses 80% can be gained, rest would do with future hedging deals

But again the formula is required.
No doubt the benefits are there and could be passed on to the public once we know the direction and whether it is the correct path!

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Sri Lanka to lose Rs65bn from fuel price cut: Energy Minister

1 Sri Lanka to lose Rs65bn from fuel price cut: Energy Minister Fri Jan 23, 2015 5:03 pm

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2 Re: Sri Lanka to lose Rs65bn from fuel price cut: Energy Minister Fri Jan 23, 2015 6:29 pm

Senior Citizen

3 Re: Sri Lanka to lose Rs65bn from fuel price cut: Energy Minister Sat Jan 24, 2015 1:01 am

Sunnyside

4 Re: Sri Lanka to lose Rs65bn from fuel price cut: Energy Minister Sat Jan 24, 2015 8:17 am

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5 Re: Sri Lanka to lose Rs65bn from fuel price cut: Energy Minister

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