State minister Dilip Wedaarachchi says such buses will even lose their route permits.
Finance minister Mangala Samaraweera is due to table a paper at today’s (12) cabinet meeting to bring down the price of kerosene oil, raised to Rs. 101 per litre from Rs. 44 on May 10.
His ministry says the production cost of kerosene oil is Rs. 100 per litre.
The use of kerosene oil to run buses and lorries resulted in a 41 per cent increase in kerosene oil consumption in the first quarter of this year.
That caused a Rs. one billion loss to the state.
With the price increase, the daily consumption declined to 150 metric tons, from 600 mt earlier.