"We have not taken a decision yet to raise prices. Retail prices were last raised in January when crude oil was 93 dollars a barrel. But even then the CPC made a loss of 1.2 billion rupees," Fowzie said.
"Now crude oil is 30 dollars more, at 123 dollars a barrel, but we have not yet taken a decision to raise prices.
"The whole world keeps increasing retail fuel prices. It is a normal thing. But we're not doing so. We are giving subsidies because we want to protect the consumer."
The CPC is selling only petrol at a profit of three rupees per litre which is sold at 127 rupees.
While overpricing petrol, amidst accusations of fleecing petrol users, a large number of whom are low income motorcycle owners, the petroleum firm under-prices diesel which is used by fleet owners.
Richer sections of society, including politicians, drive diesel-guzzling luxury jeeps.
The utility also subsidizes kerosene.
Diesel should be priced at 119 rupees according to current international oil prices but is sold for 80 rupees per litre while kerosene should be priced at 111 rupees although sold for 70 rupees a litre, Fowzie said.
"We have not been raising retail prices in the hope that international prices would come down but that does not seem to be happening."
Fowzie had earlier said the government might raise retail fuel prices after traditional new year holidays in mid-Aprll.
Economic analysts said the government's policy of subsidizing fuel prices in the hope of curbing inflation, raging at 25 percent, was misguided.
Fuel subsidies create additional demand for credit to cover lost cash-flows of petroleum utilities, which result in monetary accommodation unless interest rates go up.
Petroleum prices are not raised in Sri Lanka because politicians and other policymakers believe that 'inflation' is a petroleum phenomenon rather than a monetary one.
Sri Lanka froze energy prices in the second half of 2007, which saw some of the steepest rises in inflation in the history of the island.
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