Champika confirms oil prices will not be increased

Tuesday, 12 May 2015 01:00 - - {{hitsCtrl.values.hits}}

Minister of Power and Energy Champika Ranawaka yesterday announced that the speculations floating in the country regarding oil process escalating are false.

Addressing a media briefing in Colombo Ranawaka informed that the Power and Energy Ministry has not taken any decision or held any

discussions to increase the oil prices and explained that at a time when the Power and Energy Ministry is trying to introduce a price mechanism for the lubricate industry, it is disgusting for certain parties to create such false stories.

“Various people to gain political advantages are spreading rumours about the oil prices escalating, but those stories are incorrect and President Sirisena’s Government has allocated Rs. 80 billion to give oil subsidiaries,” he said.

Commenting further he added that from 2004-2014 the losses faced by the Petroleum Cooperation was Rs. 238.85 billion and that the tax money paid at that time was Rs. 377.84 billion. As a result of the previous regime’s corrupt principals and decisions, an amount of Rs. 309.3 billion is still due to be paid to the Cooperation through financial allowances.

And the amount Sri Lankan and Mihin Lanka Airlines have to pay is Rs. 20 billion. Therefore it is not only through privatisation of business companies, low quality oil, oil smuggling and the Hedging deal that the Petroleum Cooperation gained losses, but through the entire financial principals of the previous Government,” Ranawaka said.