People to get fuel price shock soon

The Cabinet sub-committee on the cost of living had decided to increase fuel prices, Energy Minister Udaya Gammanpila told the media yesterday (11) in Colombo. He said that the date of the price hikes  would be revealed soon.

The Minister said that if they announced the date, it would lead to long lines at filling stations and it would have disastrous consequences during the pandemic.

“We know that things are hard for everyone, that is why we didn’t increase fuel prices for 21 months. But the government can no longer bear the losses. The oil prices in the world market have been increasing. By the end of 2020, the Ceylon Petroleum Corporation (CPC) had accumulated a loss of RS. 331 billion. Each year we spend three billion dollars to import oil,” he said.

Gammanpila said that the main sources of income for the country had been affected due to the pandemic and foreign investments and tourism had stopped and a large number of Lankans working abroad had returned, decreasing remittances.

Prime Minister Mahinda Rajapaksa’s Office on May 20 said that a ministerial subcommittee discussed the sharp increase in crude oil prices compared to 2019 and 2020.

The PM chaired the meeting in the Committee Room 8 in Parliament. The Cabinet subcommittee discussed ways and means of addressing the problems caused by the crude price hike.

The PM’s Office said that ministers had discussed how to sustain public relief in the wake of further increase in expenditure. The subcommittee discussed the financial problems of the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB), among other things. The PM’s Office said that ministers had discussed how to sustain public relief in the wake of further increase in expenditure. The subcommittee discussed the financial problems of the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB), among other things. (RK)