Common price formula for CPC, LIOC – Kanchana

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By Faadhila Thassim 

A common fuel price formula will be set for both Ceylon Petroleum Corporation (CEYPETCO) and Lanka IOC for one month until it is revised the following month, Minister of Power and Energy, Kanchana Wijesekera said.

He added, thereby a common reasonable price will be set and this price will be determined by taking into consideration several factors including the price of fuel in the world market and the dollar exchange rate.

While saying that this decision was made following a discussion with Lanka IOC, he added as fuel at Lanka IOC is priced at a higher rate compared to CEYPETCO, there has been overcrowding at CEYPETCO fuel stations.

He said the difference in fuel prices at CEYPETCO and Lanka IOC has also resulted in an increase in black market trading, due to which the need for a common fuel price formula was focused on. Wijesekera also observed that a daily loss of Rs 328 million is still being incurred by CEYPETCO even following the recent increase in the fuel price.

Wijesekera further said certain sectors that have been immensely affected due to the increase in the fuel price including the fisheries and tourism sector will be provided a certain relief, adding that a Cabinet Paper in this regard will be submitted soon.

He also observed that the failure of both the former Governments and the incumbent Government to disclose accurate information of any crisis faced has resulted in the ongoing crisis, adding that if the public is aware of the real situation, they would support the Government in overcoming difficulties.

A time frame for an uninterrupted power supply will be informed to the public within the next week, Wijesekera further said.

He added that the relevant plan for such uninterrupted power supply will be communicated to the public to obtain their support.

Wijesekera said even if there is sufficient fuel for electricity generation, a 24-hour power supply is presently impossible, as the water level at the hydropower plants is low.