Rs. 2000 million loss to the Petroleum Corporation due to the increase in Production tax

Wednesday, 31 August 2016 - 13:14

Rs.+2000+million+loss+to+the+Petroleum+Corporation+due+to+the+increase+in+Production+tax

The minister of Petroleum Industries Minister Chandima Weerakkody says that the Petroleum Corporation has to bear a monthly loss of 2000 million rupees due to the recent increase in production tax for diesel.

The minister stated earlier that the Finance Ministry increased the production tax on diesel without consulting him.

However, minister Weerakkody said that he expects to settle the matter during a scheduled meeting with the Minister of Finance soon.

The Ministry of Finance increased production tax on diesel to 13 rupees per liter from the previous 3 rupees per liter recently. 

Subsequently, Lanka IOC’s Managing Director Sham Bora told our news team that his company sought government permission to increase the price of diesel. 

However, the minister of Petroleum Industries told our news team that Lanka IOC has so far not made a request for such an increase in the price of diesel.