Sources from the Ministry of Finance say that a final agreement on the fuel pricing mechanism will be arrived at by the end of this week.
The Ministry said that it believes that the pricing mechanism should take into account price fluctuations experienced in the world market.
The International Monetary Fund noted that it arrived at a decision with Sri Lanka regarding the implementation of a price formula.
However, the Ceylon Petroleum Corporation expects to minimize the losses it is incurring owing to the rising fuel prices in the international market.
It has urged the authorities to reduce taxes and upwardly revise the fuel prices.
It is reported that the discussions between the CPC and Finance Ministry are in the final stage right now.
Accordingly, a spokesperson for the Finance Ministry said that the pricing mechanism once agreed upon would be presented before the Cabinet by the end of this week, for approval.