Petrol prices may go up again

By Malik Gunatilleke

Ceylon Petroleum Corporation warned yesterday that petrol prices would have to be raised to an all time high of Rs. 102 a litre if a new tax was not waived.CPC chairman Asantha de Mel said the tax of Rs. 20 a litre – announced by the government in a gazette on February 2 – would have to be borne by the corporation.He said if the tax was not waived, petrol prices would be increased by five rupees a litre as the CPC could not afford to bear the cost.

On September 5, last year the CPC increased the price of petrol prices to Rs. 101 a litre and then reduced it to Rs. 92 but later increased it to Rs. 97 in terms of world market prices and dollar fluctuations.

Meanwhile the one third share of petroleum distribution owned by the Treasury has now been handed over to the CPC and Mr. de Mel said he was taking steps to improve the quality of service as well as revenue from these 107 filling stations.

Mr. de Mel said renovation of these stations was being funded by the CPC and he believed it would help the CPC to get ahead of its Indian rival, Lanka Indian Oil Company.