Fuel price hike in the pipeline

by Saman Gamage

Chairman of the Ceylon Petroleum Corporation Sumith Wijesinghe says his institution is left with no alternative but to increase fuel prices because of the rising crude oil prices in the world market.

Wijesinghe said that the CPC was suffering huge losses owing to the prevailing situation and he would be compelled to ask the government for fuel price revisions.

Wijesinghe said that the CPC had suffered losses amounting to Rs. 70 billion as at Aug 31. The price of a barrel of crude oil had been USD 85 at the beginning of October in the world market, but during the past 11 days it had increased to USD 92.

Commenting on the situation, Energy Minister Udaya Gammanpila said he would discuss the issue of fuel prices with the Cabinet of Ministers. If the government could provide some relief to the CPC and help it mitigate losses, then there would be no need to increase fuel prices, he said, adding that fuel prices had been increased in June on the basis of prices prevailing in the world market in May.

The government increased the prices of fuel with effect from midnight June 11, claiming that the move was aimed at mitigating the losses caused by oil price increases in the market.