CPC seeks fuel price hike or tax concessions

Cash-strapped Ceylon Petroleum Corporation (CPC) is seeking the approval of the state authorities to introduce the highest ever fuel price in the history of Sri Lanka amidst not having dollars nor rupees to buy dollars for oil imports, official sources said.

According to a top CPC official, the corporation has no option other than taking a decision on supplying fuel only to essential services including power plants, railways, passenger busses, three armed forces and the police.

The daily loss of the CPC is over Rs. 3.65 billion and it cannot collect rupees to buy dollars to import fuel in the coming months if the relevant authorities have not given approval to increase the price, he added.

The proposal to increase the price of fuel had been handed over to Energy Minister Udaya Gammanpila for the second time, he said adding that the CPC will definitely collapse if the relevant authorities fail to take a decision on this issue.

The proposed price hike for Petrol is Rs. 192 per litre from Rs. 177 and Rs. 169 per litre for Diesel from Rs.121.

The CPC has made a request from the Treasury to grant some tax concession or approve the price hike proposed by them, he added.

Meanwhile the Minister has said that the ministry has already devised a cost reflective price formula and it needs the Treasury approval before submitting it to the cabinet. (Bandula)