Govt. to discuss suitable method to hike fuel prices

The government plans to increase fuel prices based on a suitable methodology following discussion with the Finance Ministry, Ceylon Petroleum Corporation (CPC) and other key stakeholders. 

“When and how to increase prices will be decided following discussions with the Finance Ministry, 

CPC and other stakeholders,” Trade Minister Bandula Gunawardena said addressing the weekly Cabinet Press Briefing yesterday.

He insisted that the CPC needed to adjust fuel prices on par with the global market in order to sustain operations. 
The current government scrapped the International Monetary Fund (IMF)-backed fuel pricing formula introduced during the previous regime after coming into power in late 2019. 

CPC Chairman Sumith Wijesinghe this week called for fuel price increase while pointing out that CPC is on course to incur Rs.70 billion loss by end of this month. 

According to him, CPC incurs a loss of Rs.14.56 per litre of petrol and Rs. 31.46 per litre of diesel. Similarly, Petroleum Minister Udaya Gammanpila also cautioned that if the current loss becomes recurrent, the CPC, the government, and the economy would be unable to bear it. Meanwhile, commenting on prices of essential goods, Minister Gunawardena claimed that prices of essential goods are much higher in India, Nepal, Bangladesh and Bhutan despite recent sharp price increases in milk powder, LPG and other essential goods in Sri Lanka. Further, he blamed the rising cost of essential goods entirely on the pandemic.