Fuel prices are likely to be reduced further within the next three months with world prices going down and Sri Lanka now being able to buy oil directly from Iran, following the lifting of sanctions by the United States, a top official said yesterday.
Power and Energy Ministry Secretary B.M.S. Batagoda told the Sunday Times Sri Lanka’s oil purchase bill could be significantly reduced in the next three months and the benefits would be passed on to the people.
He said that when Iranian crude oil came back to the market, the price was likely to drop by as much as US$ 5 a barrel.
Mr. Batagoda said the ministry was seeking information from the US embassy here on how it could resume transactions with companies dealing in Iranian oil.
He said that besides buying oil directly from Iran, the lifting of the sanctions would allow Sri Lanka to go ahead and sign agreements with Iran for other projects, including the renovation and expansion of the Sapugaskanda refinery, which was originally finetuned to refine Iranian crude.
On July 14, the United States and other world powers signed a historic deal with Iran whereby sanctions would be lifted while Iran pledged it would not make nuclear weapons.
Sri Lanka last week welcomed the deal, saying it had supported efforts by the international community to resolve the Iran nuclear issue amicably, respecting Iran’s right to peaceful uses of nuclear energy.