July 11 (LBO) – Sri Lanka’s energy minister wants nine billion rupees from the Treasury to settle Ceylon Petroleum Corp’s subsidy bill, as the Treasury tries to free up pricing.
We will not raise prices, but we have asked the Treasury for nine billion rupees from January to date to settle CPC’s subsidy bill, or allow it to be set off against Value Added Tax and income tax, Minister of Petroleum A H M Fowzie, told LBO on Tuesday.
The request comes in the midst of an agreement to be signed before the end of July between the government and Lanka Indian Oil Corporation to repay overdue subsidies and amend a fuel pricing formula.
The agreement is hotly disputed by Ceypetco that wants certain changes to the agreement and to be included in discussions that will also affect it.
Ceylon Petroleum Corporation has written to the Treasury to ask that a level playing field be created between both players with the new formula, to prevent price wars.
The Treasury has said it will not control Indian Oil Corp’s prices with the new agreement, but Ceypetco still needs the energy minister’s approval for a price change.
We made a price request la