The Ceylon Petroleum Corporation (CPC) has suggested to the Energy Ministry to increase fuel prices due to escalating world oil prices unless the Treasury provides some concessions, a senior official of the ministry, who wished to remain anonymous, disclosed.
Increasing fuel prices is the only option for the urgent need to control the domestic demand for fuel in the face of the foreign exchange (forex) crisis that the country is faced with at present, the official said adding that the demand for fuel is expected to increase with the relaxation of COVID-19 mobility restrictions.
The debt-ridden CPC is exploring every possibility to obtain local or international loan facilities to settle its fuel bill and debt servicing for bank borrowings.
The reason was the depletion of foreign reserves in two state banks and its inability to show its US$ allocations for LCs opened on behalf of CPC, a Treasury official said adding that the CPC owed $3.3 billion to these banks.
The Central Bank is also in favour of this proposal to increase fuel prices as the expected foreign funding to find necessary dollars has still not materialised, informed sources said.
The proposal is to be submitted to the Finance Ministry and Cabinet Sub-Committee on Cost of Living as there will be a gradual recovery of economic activities with the rise in domestic demand for oil which is likely to increase the import bill and thereby can inflict further pressure on the currency, the sources said. (BS)
You can share this post!
Content
The Judicial Service Commission (JSC) has interdicted Colombo Fort Magistrate Kosala Senadheera.
Mr. Ali Sabri Rahim, a Member of Parliament (MP) for Puttalam District whom an open warrant had been issued, attended a public ceremony at Al Aksha National School in Kalpitiya today (16) as the special guest of honor.
The Supreme Court today refused interim relief in an application filed by President’s Counsel Senaka Walgampaya seeking an Order from the Supreme Court compelling the President to appoint judges to fill the existing vacancies in the Court Of Appeal.
The deadline for online applications to the 2024 G.C.E. Advanced Level (A/L) Examination has been extended until July 12, the Department of Examinations said.
Gazette on new speed limit regulations to be issued within two weeks
Cabinet has approved a proposed amendment to the Constitution that a referendum would be required to extend the Presidential and Parliamentary term beyond five years.
Leave Comments