Fuel Price Hike Imminent

A fuel price hike is imminent by both LOIC and CPC due to the losses in the first half of this year. LIOC says a liter of petrol now retailed at Rs.115 has to be increased by at least by Rs.15 and diesel which is sold at Rs.73/- per liter has to be hiked by Rs.10 in order for them to survive.

Petroleum Ministry Secretary Titus Jayawardena has said to media that they had received a number of requests from the LIOC and said they were watching the situation intensely, but no decision had been so far made to increase fuel prices. He says though they were hoping for a dip in the price of crude in the world market it was proving to be volatile with prices ranging between $76 and $77 a barrel in recent days.

He also conceded that the situation at the Ceylon Petroleum Corporation, the biggest supplier of fuel to the local market, was far worse with it sustaining a staggering loss of Rs.7.5 billion in the first three months of this year alone.