The Sri Lanka Petroleum Private Tanker Owners' Association (SLPPTOA) today said that there would be a 15% price hike in line with the recent diesel price hike from July 1.

SLPPTOA Joint Secretary D.V. Shantha Silva said a discussion was held in this regard with the Energy Minister on June 25.

"The meeting was held with the Ceylon Petroleum Corporation (CEYPETCO), CEYPETCO Managing Director (MD), CEYPETCO Deputy Manager (Finance) and Ceylon Petroleum Storage Terminals Limited (CPSTL) officials headed by the Energy Minister," he said.

During the discussions, the request made by the SLPPTOA to change the transport formula according to the recent diesel price increase approved by the officials, Mr. Silva said. 

Accordingly, a 15% will be added to the current transport costs, he said.

Earlier, discussions were held to update the transport formula with Energy Minister Udaya Gammanpila on February 21, 2021. Later, several letters were sent in this regard on March 3, 20, April 27 and June 14, he said. 

With the recent increase in fuel prices, diesel was increased by Rs.7 with effect from June 11 midnight. The existing transport costs mean the tanker operators have to bear an additional cost per km. As per the transport formula, the transport cost per km was Rs.18.83 to handle a 13,200 litre tank. The tanker operator must bear a cost of Rs.28 for a 19,000 litre tank and Rs.7.67 for a 33,000 litre tank. (Chaturanga Samarawickrama)