Given the high cost-of-living conditions, the Government has decided not to increase fuel prices of the State-run Ceylon Petroleum Corporation (CPC).

“There is no decision to increase fuel prices,” Cabinet Co-Spokesperson Dr. Ramesh Pathirana said at the post-Cabinet meeting media briefing yesterday.

He said that the Government had decided to provide fuel at a loss, considering the hardships borne by the citizens as a result of the unprecedented hike in world market prices.

“The oil barrel which was at $ 45 two years ago is now $ 84 — the prices have almost doubled. However, the Government will absorb the loss and continue to provide petrol and diesel at the current rate,” he added.

Lanka IOC last week increased prices for Auto Diesel and Petrol 92 by Rs. 5 per litre.

Earlier this month, CPC called on the Government for a price hike, considering the global market prices and losses incurred by the State-owned entity. 

CPC Chairman Sumith Wijesinghe said it had been estimated that the loss in October would be around Rs. 10 billion or more on top of Rs. 70 billion lost up to end-August.

“The financial burden is unbearable unless there is an upward price revision,” he said.

 

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