No decision taken to increase CPC fuel prices: Energy Minister

Monday, 14 February 2022 04:03 - - {{hitsCtrl.values.hits}}

Minister Udaya Gammanpila says it is challenging, but trying not to add more burden to people
Confirms fuel pricing formula drafted; to be presented to Cabinet next week
CPC Chief Sumith Wijesinghe says petrol incurs loss of Rs. 16 per litre, Diesel Rs. 50 per litre

By Charumini de Silva

Despite the repeated request by Ceylon Petroleum Corporation (CPC) to the Finance Ministry to increase fuel prices, the Energy Ministry confirmed that no decision has been made yet.

“The CPC has informed the Finance Ministry on a price hike, but we have not got a response thus far,” Energy Minister Udaya Gammanpila said.

However, he said it all depends on the global prices and how long the CPC could hold on to the current rates. “It is very challenging even at the current stage, but we are trying our best not to increase and further burden the public,” Gammanpila added.

Minister Gammanpila also said the fuel pricing formula has been drafted and it will be presented to the Cabinet on 21 February.

The CPC Chairman Sumith Wijesinghe said it is necessary to increase prices as global market prices have increased sharply and it was difficult to manage at this level.

“At the current prices, Petrol is incurring a loss of Rs. 16 per litre and Diesel Rs. 50 per litre,” he said.

The global oil prices have increased by 20% this year. As oil prices spike on rumours that Russia is preparing to invade Ukraine, Brent oil barrel price has gone up by 3.3% to $ 94.44.

On 7 February, the CPC also requested the Minister in a letter to increase prices.