Ceylon Petroleum Corporation requests Rs. 50 Diesel Price increase

CEYPETCO Ceylon Petroleum Corporation

Minister of Energy Udaya Gammanpila said last night (February 17), if the Treasury approves the Ceylon Petroleum Corporation’s (CPC) proposed increase in petrol and diesel prices, it will be the largest increase in the history of fuel hikes.

In light of the CPC’s monthly loss of Rs. 11 billion, the CPC has asked the Ministry of Energy to raise fuel prices as a remedy. Minister Gammanpila on the other hand said, being the Minister-in-Charge of Energy, he will not approve such a large increase but will forward the proposal to the Treasury.

He said the CPC has requested a diesel price increase of about Rs. 50, and that in the past, the Government has only raised the price of petrol by Rs. 20 and diesel by Rs. 10 and not anything more.

However, the Minister will hold a Media briefing at the Ministry today at 10 AM to provide further clarification.

Lanka IOC, an Indian oil subsidiary, has already raised petrol prices to Rs. 184.

Oil prices have risen in the global market and fuel taxes have become a major source of revenue in Sri Lanka and most other countries. The Finance Ministry sets the price of CPC fuel.

Some gas stations ran out of fuel over the last week, owing to panic buying. Due to the foreign currency shortage, there have been delays in clearing ships with fuel.

(Source: Ceylon Today – By Thameenah Razeek)