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Mangala finally reveals ‘Fuel pricing formula’

2018-10-18 17:26:26
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The fuel pricing formula was revealed by Finance MinisterManagala Samaraweera today at a press conference.

“I promised to reveal the price formula some time back. This is a simple one. It is V1+V2+V3+V4=MRP( maximum retail price). This is what we used as the fuel price formula” he said.

The formula follows:

Video by Buddhi


  Comments - 53

  • channa Thursday, 18 October 2018 17:32

    Some politicians said that they saw the formula but didn't understand. I can imagine their educational standard if they can't understand this simple additions.

    Reply : 1       79

    Prasanna Thursday, 18 October 2018 17:52

    May be Sub-Components such as Weighted average Premium/Evaporation Calculation/Exchange Rate Fluctuation/Holding Cost etc.

    Reply : 4       32

    Mongal Thursday, 18 October 2018 17:37

    Oh what a formula! this is like saying 1 2 3 4 =10 . It shows his level of understanding of what a formula is

    Reply : 27       29

    Vijey Thursday, 18 October 2018 18:04

    You don’t need a degree in Mathematics to understand this simple computation.

    Reply : 4       42

    Thassim Thursday, 18 October 2018 17:40

    It would be better if the values for each component is made public so the general public is aware.

    Reply : 2       28

    Thassim Thursday, 18 October 2018 17:45

    My apologies.Just saw it.Well done!

    Reply : 3       14

    Ajay Thursday, 18 October 2018 17:46

    v3 can be reduces by politically appointed goons by current and former ministers..we do not need to pay for themWe are in control of oil price

    Reply : 0       13

    Mario Fdo Thursday, 18 October 2018 17:47

    A series of random numbers, which are not independently verifiable or predictable, are used in the arrival of a major factor in the fuel management of large users. Current percentages in the form of a pie chart at least, would have put each component into an understandable perspective.

    Reply : 5       10

    Little John Thursday, 18 October 2018 17:49

    How can this be a formula. This is just cost computation. if MRP is total dinner bill you get at a restaurant: V1=Chicken fried rice V2=Chosuey V3=soup V4=Service charge V5=VAT. Is this a formula

    Reply : 4       32

    Mario Fdo Thursday, 18 October 2018 17:52

    Now with the second page it makes sense.

    Reply : 0       3

    Harini Thursday, 18 October 2018 17:53

    So for every Rs.100 we pay you pocket Rs.35 from it. Great. Now Minister, will there also be a salary formula so we don't drop dead after you beat us - the only workers - with absurd price punches like this on essentials? Strange formula this - fuel and soon electricity and water will have an elastic formula, but salaries are inelastic! It's a strange country we live in now.

    Reply : 2       11

    Shas Thursday, 18 October 2018 22:29

    Why are you against taxes You expect government to take no taxs from you.You also expect free healthcare and free education and ect.Why do you think it is ok if price of gold increase in world market it's fair to increase price in sri lankaBut not oil.Sri Lanka dosent produce oil so price will fluctuate if prices in world market change. Don't criticise everything because you can. Because we have real problems that needs to be solved

    Reply : 6       20

    observer Friday, 19 October 2018 03:39

    @shaWe are not against paying taxes if it is put into good use also everyone pays their dues.Do you see that is happening ??.

    Reply : 0       4

    Mandy Thursday, 18 October 2018 17:54

    This is very basic. It is not a formula (or a suthrayak as JO says) in the sense of an abstruse chemical or physical one. I am sure this is what was used since DAY 01 as it is so obvious as found even in a Grade V exam paper. What ado about nothing. Only I find no profit added in the MRP.

    Reply : 2       10

    Bala Thursday, 18 October 2018 17:55

    So they are selling the fuel with no profit. That is fantastc. well done Petroleum Corporation.

    Reply : 0       10

    Amara Thursday, 18 October 2018 18:01

    Taxation is lower that expected and why on earth did they act as if this was some "duckworth and lewis" like formular. This is pretty straight forward.

    Reply : 0       5

    Gonson Thursday, 18 October 2018 18:08

    If it's a formula and the variables are the same how come administrative cost change from one to another. Other three factors I can understand changes. Anyway this is just a cost addition although it might look like some complicated formula to Mangy's great brain

    Reply : 1       9

    Mandy Thursday, 18 October 2018 19:59

    Because the other costs are just direct per litre but admin cost is on the value (V1 V2 V3) and thruput of each product. Some products sales volume less some more and the staff, equipment used and finance cost (Petrol more Kero less etc) in each product different.

    Reply : 1       4

    Mandy Thursday, 18 October 2018 20:08

    Sorry I think I interchanged V4

    Reply : 0       0

    Sunil Thursday, 18 October 2018 18:30

    Appeal to HE President and Hon Prime Minister,On behalf of the 22 million Sri Lankan I appeal to you to exempt petrol, diesel and gas from all taxes and duties, when the crude oil prices are high. This unnecessarily inflates the price and the poor people suffer so much. Please have a heart for the suffering masses.

    Reply : 5       6

    lakshitha Thursday, 18 October 2018 23:33

    u right ,,by charging tax on this expensive commodity Govt is just pushing up all the other prices such as transport cost and passenger transport such as busse and three wheelers,,very foolish economis to charge high taxes on petrol and diesel,,,when the cost of barrel goes up reduce taxes and dont let it burden the people,,

    Reply : 1       5

    Stan Friday, 19 October 2018 08:19

    It is just a formula which has been formulated with no concern about the consequences.

    Reply : 1       0

    S.P.Ramkumar Thursday, 18 October 2018 19:24

    Formula is good rather than going to hedging. Why don't you Keep taxes for constant even buying price gone up or constant V = 30.

    Reply : 1       3

    Cost Acct Thursday, 18 October 2018 19:31

    V1 = Actual cost Commission

    Reply : 1       2

    ANTON Thursday, 18 October 2018 19:50

    AND SOME MORE........ V5 = PARIMENTERY CANTEEN EXPENSES....... V6= EXPENSES FOR FOREIGN TOURS V7=LODGING AND VEHICLE EXPENSES OF MINISTERS

    Reply : 1       5

    Sanka Thursday, 18 October 2018 20:17

    Singapore platts is higher than $3 usually by MOPAG. ( mean of platts Arabian gulf) . Why not take from Middle East and save that $3? If it’s 50,000 mt refined fuel, it’s USD 150,000 savings.

    Reply : 0       3

    Tinkiriya Thursday, 18 October 2018 20:35

    Even wasted the ink in writing this. This is called a cost calculation breakdown you DUMMIES!

    Reply : 2       4

    Gonta Thursday, 18 October 2018 20:35

    This is the formula any sillara mudalali uses. Aiyo salli these UNP economic pundits. Wonder what the great economic brain Harsha de Silva has to say about this

    Reply : 6       3

    Maru de Sira Thursday, 18 October 2018 21:37

    Mahinda Rajapaksha Pohottuwa = Victory 1 Victory 2 Victory 3 Victory 4.

    Reply : 8       9

    Cabraal Thursday, 18 October 2018 21:44

    Mangala and his formula reminds me of the Emperor and his new clothes. Probably the gon UNP economic pundits advising him would have shown this and told that this is a super formula he can show the public and Mangala who barely knows a cost calculation from a pricing formula would have jumped at it. And as the story goes the Emporer stands naked in his new clothes

    Reply : 2       3

    RK Thursday, 18 October 2018 21:54

    Mangala who has little knowledge of what he is holding is fine. But I cannot understand how Eran Wickremeratne who definitely knows that this is not a proper pricing formula is standing next to him beaming while still wearing his sarong

    Reply : 0       3

    Math PhD Thursday, 18 October 2018 21:59

    This formula is so difficult that I fainted immediately after looking at it.

    Reply : 0       7

    Sritharan Thursday, 18 October 2018 22:08

    Actually where is the profit component. It could be deviously said that CPC is not making a profit. What about LIOC who is selling at the same price. Does this mean that LIOC is making those huge profits they make without the knowledge of the Government? Is Mangala trying to hoodwink us by showing this nonsense

    Reply : 0       2

    Rajiv Thursday, 18 October 2018 22:16

    Mangala Ranil = MRP

    Reply : 4       1

    Ava Mangala Thursday, 18 October 2018 22:46

    VIVA !

    Reply : 1       1

    Wise Donkey Thursday, 18 October 2018 23:02

    UREKA !

    Reply : 1       3

    JR Thursday, 18 October 2018 23:11

    Hurrah! Another great achievement of Colombo 7 UNP economic pundits who were preaching from the rooftops how efficient they were at management and how knowledgable they were. Keep on going this way

    Reply : 0       4

    GoodOne Thursday, 18 October 2018 23:17

    In the beginning they had no formula. They just decided the retail price against the buying and processing cost of a crud barrel. It can't be called a formula.However since it needs to be published somehow, here it is the most complicated formula even the finance minister didn't get. mrp = x y z They know we'd brag this for few days and as always will move on as typical Sri Lankans.

    Reply : 0       4

    RT Thursday, 18 October 2018 23:20

    According to this Rs. 53 is taxes from a Petrol 92 octane liter and Rs. 25 from auto diesel liter. If I remember correct it was Pa Cha Ranawaka who said at an election meeting that MR was getting so much taxes from fuel for Namal to buy Lamboginis. If the government is still getting so much taxes wonder who is buying Lamboginis now. Probably its Pa Cha himself

    Reply : 0       5

    B.Sc. Thursday, 18 October 2018 23:44

    Well done Mangala. I think you are now ready to sit the Grade 3 exam.

    Reply : 3       8

    observer Friday, 19 October 2018 03:42

    Yes. Good try.Need to try harder to convince the people of the country

    Reply : 0       1

    Gerard Friday, 19 October 2018 04:29

    So according to the formula government and petroleum corporation don't make any profit by selling fuel? How are they going to pay back the loans and losses made back in the days?

    Reply : 0       2

    Nilanga Friday, 19 October 2018 06:15

    Ha HaIt took many years for these guys to come up with this trivial formula - adding 4 numbers should not take this longThis explains why this county is stagnant.

    Reply : 0       2

    Ghost Friday, 19 October 2018 06:26

    Happy now, Bandu??????

    Reply : 0       0

    Tharindu Friday, 19 October 2018 06:30

    I don’t know why people are mad about this equation. It’s true that this is a simple cost calculation. However, this is a similar equation to the ones used by other countries as Canada. What difference would it make by making an equation complicated? All of you who blame the equation, could you post an example equation that you are expecting for this?

    Reply : 1       1

    Janaka Friday, 19 October 2018 08:26

    @Tharindu, Loosen up and get a life! You must be one very boring person...

    Reply : 1       2

    ANTON Friday, 19 October 2018 06:55

    WE 01 WE 02 WE 03 WE 04

    Reply : 0       1

    Sunil Friday, 19 October 2018 07:04

    The proudest thing that the government could present in three and a half years. Bravo!

    Reply : 0       1

    Ralahamy Friday, 19 October 2018 07:29

    Look at the overall picture of other countries.Only Singapore charges a lower Tax compared to Sri Lanka and the rest of the countries charge a higher rate of Tax. It is a great effort by every Government in Sri Lanka to keep the price of Fuel within reachable level of ordinary citizen. This compared to the level of income in other countries. JO and some reporters at the cabinet decision meeting made such a fuss is nothing but a joke.

    Reply : 2       2

    Missaka Friday, 19 October 2018 07:31

    It sounds like MRP means "Mahinda Rajapaksha Problems' (MRP=v1 v2..).

    Reply : 1       0

    Gihan Friday, 19 October 2018 08:19

    So, where is V5 and V6?V5 is the cost of back handers.V6 profit for CPCThos formula is completely wrong and we've been paying far too little at the pumps.Vhange and raise the price immediately!

    Reply : 0       1

    anil Friday, 19 October 2018 09:28

    Equation is okey, please solve the equation with the data's you have and show how last prices were calculated, show few examples.

    Reply : 0       1

    Anu Friday, 19 October 2018 09:35

    This formula is like a top abstraction of a software. It seems very simple from outside but how much randomness inside the variables? This is not clearly the correct formula but a fraud to cheat the people. They can change any of these variables according to their will since we don't know how they are calculated.

    Reply : 0       2

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