Fuel price increase is inevitable unless treasury intervenes (Video)

Sunday, 17 October 2021 - 14:04

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The Ceylon Petroleum Corporation (CPC) has again requested the Treasury to provide a speedy solution to the high price of a barrel of crude oil in the world market.

As of yesterday, a barrel of crude oil had hit a high price of $ 85, while Sri Lanka obtains refined fuel at $ 92 a liter.

Chairman of the Ceylon Petroleum Corporation Sumith Wijesinghe stated that maintaining the reserves due to this situation has become a serious crisis.

Calling a media briefing last week, Energy Minister Udaya Gammanpila stated that with the continuous rise in the price of a barrel of crude oil in the world market, an increase in prices has become essential.

However, he said that it would be decided based on the relief provided by the treasury.

The proposal was made at a meeting of the Cabinet of Ministers and the Minister of Finance had not stated a definite position on whether a tax relief could be granted.

Against this backdrop, Minister Udaya Gammanpila told the Hiru news team that he would try not to increase fuel prices as much as possible at a time when the cost of living is on the rise.

Indian Oil, meanwhile, says it has suffered huge losses due to rising prices in the world market.

The price of petrol and diesel in the international market has risen to between $ 93 and $ 94 per barrel.

Accordingly, the loss per liter of diesel alone is over Rs. 30.

Even the price of a barrel of crude oil has exceeded $ 85, and four months ago the price of a barrel of crude oil was between $ 50 and $ 60, according to the IOC Chairman Manoj Gupta.

In this context, the IOC chairman speaking to Hiru news said that they are in close touch with the government on fuel prices. 

He said that although government approval was not required to increase its fuel prices, it was sensitive to the country's operating systems.

He stated that he had previously followed a fair policy regarding oil prices.

However, the IOC chairman said that they were looking to increasing its fuel prices relative to world market prices. 

The IOC Chairman Manoj Gupta stressed that it expects the government to take action and if that does not happen, the company will have to make a decision.