Minister of Petroleum Resources Development Chandima Weerakkody is optimistic that the price of lubricants can be reduced in the future by 25%.
Addressing a news conference in Colombo, the Minister said that action will be initiated to grant this relief with the launch of the Lubricants business in affiliation to the Ceylon Petroleum Corporation.
The Minister said lubricants were the most profitable venture in the petroleum sector. The lubricants were imported and sold at a higher price for many years without engaging in this business. They had faced an issue of setting up their own plant. The only thing that they could do in conformity to the regulations prevailing in the country is to get an investment under the BOT system and supply lubricants. They will be embarking on a project in affiliation to the Petroleum Corporation with an investment of US$13 million.
Accordingly the Minister said that they expected to bring down the price of lubricants by 25% A journalist queried as to whether the price of fuel cannot be reduced.
In response the Minister said that the Petroleum is indebted to the country to the tune of Rs.350 billion. He said he is the first person who favours if the fuel price is reduced. But as leaders if they drew their attention to this matter in a parochial manner the country’s future will be bleak. As such they have begun to repay the debt. This did not mean that the prices could not be reduced until the debts are paid. The fuel price was reduced by more thn 30% in January 2015.
An agreement was signed with Western Gigo for an investment of more than 100 million rupees for the sale of date in the Mannar Basin. The Petroleum Corporation said that a profit of Rs.12 million has already been earned in this process.