Another fuel price hike soon?

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Hinting at a possible fuel price hike in the coming weeks, Minister of Power and Energy, Kanchana Wijesekara said yesterday (5), the joint fuel price formula of the Ceylon Petroleum Corporation (CPC) and Lanka Indian Oil Company (LIOC) would be presented to Cabinet next week.

Addressing Parliament, Wijesekara said, the intention of the formula is to minimise the CPC’s losses.

“The CPC is not recording profits even with the recent price hike. One USD was Rs 330 when fuel prices were last increased. Now it has gone up to Rs 360. We spent USD 120 million to import fuel per month two years ago. We estimate we would have to spend USD 585 million this month. It would not be possible to cover the total cost at the CPC through this joint formula. But we would be able to cover the loss to some extent through this. Otherwise, we will not be able to find US dollars to import future fuel shipments,” the Minister said.

Wijesekara also said he is confident there was no shortage of petrol in the country and that the diesel shortage would continue for a few more days.

This is because the diesel supply to fuel stations has been restricted as more fuel is needed to generate power due to the breakdown in the Norochcholai power plant.

By Gagani Weerakoon and Methmalie Dissanayake