Fuel prices up

• There has never been a time in history when prices in the world market have not been revised for such a long time

By Chaturanga Samarawickrama   

The Cabinet sub-committee on the cost of living has decided to revise fuel prices, Energy Minister Udaya Gammanpila said in a media briefing yesterday.   

He said that due to the country’s pandemic situation, it was not possible to announce the date, because doing so would result in long queues at filling stations.  
“Despite the huge increase in fuel prices in the world market, the government has managed to hold the current fuel prices without revising them for 21 months. Unfortunately, the government can no longer keep prices stable. There has never been a time in history when prices in the world market have not been revised for such a long time. A loss of Rs. 331 billion will be incurred by the Ceylon Petroleum Corporation (CPC) by the end of 2021 due to the continuous purchase of fuel at higher prices with low sales at lower prices,” the Minister said.  
As a result, the debt of the CPC has become unaffordable, he said.  

“The government must spend $3 billion per year on fuel imports. Due to the pandemic situation, foreign investment has stopped. A large number of foreign workers have returned and their remittances have decreased. 

Following a lengthy debate, the Cabinet sub-committee on living expenses decided to revise fuel prices, Minister Gammanpila added. 

•  Despite the huge increase in fuel prices in the world market, the  government has managed to hold the current fuel prices without revising  them for 21 months