Cabraal pumps up for CPC fuel hike

Central Bank Governor Nivard Cabraal is joining a select chorus for a hike in prices by State-controlled Ceylon Petroleum Corporation. 

“Sri Lanka’s fuel price revision is now long overdue and petrol and diesel pump-prices are in some instance less than half of some countries in the region,” tweeted Cabraal with a table listing comparative fuel prices. 

Though convincing, the CBSL Chief however failed to compare consumer prices in those comparative countries whereas Sri Lanka has begun to experience initial signs of hyper-inflation in recent months. Energy Minister Udaya Gammanpila on Friday said he had made a written request from Finance Minister Basil Rajapaksa to remove the taxes imposed on imported fuel and to increase prices.

“The request was made after considering the difficulties faced in carrying out operations at the Ceylon Petroleum Corporation (CPC), and its continuous loss-making streak,” he told journalists.

He said the world crude prices have increased to an all-time high of $ 19,286 per barrel, adding that the Finance Ministry has been informed on the rising world oil market situation, but the Ministry is yet to respond.

As per the data shared, the CPC at present suffers a loss of Rs. 551 million monthly on top of Rs. 83 billion last year.

The Minister noted that the CPC pays tax of Rs. 42 is imposed on a litre of 92 Octane Petrol, Rs. 64 on 95 Octane Petrol, Rs. 17 on diesel and Rs. 39 on Super Diesel. Thereby, the Treasury receives Rs. 368 million on a daily basis as taxes from the CPC.