Fuel prices will not be reduced

1 July 2011 11:52 pm Views - 3483

The price of fuel in the local market will not be reduced even though the world market price of a barrel of crude oil has decreased by about US$20 during the past few months, the Petroleum Industries Ministry announced

The import price of a barrel of crude oil which was imported at US$111.50 in May had decreased to US$90.70 by June 23. But Petroleum Ministry Secretary Titus Jayewardene said the benefit of decreasing prices could not be passed down to consumers as the Ceylon Petroleum Corporation was continuing to incur losses in the sale of fuel.

“We incur a loss of Rs.33 on a litre of diesel and Rs.3 on a litre of petrol,” Mr. Jayawardena said adding that the CPC loses Rs.31 on the sale of a litre of kerosene and a reduction in prices will only worsen the crisis at the corporation.

“Fuel prices will not be increased despite rumors to that effect,” he said. (Lakna Paranamanna)