May 31, 2006 (LBO) – Sri Lanka’s Energy Minister has set the stage to take back Ceylon Petroleum Corporation assets, currently vested with the Treasury.
Officials from CPC will sit down with their treasury counterparts this week to push for another fuel hike to keep up with runaway world crude oil prices.
Fowzie says CPC has incurred a 2-billion rupee (19 million dollars) loss in April, adding that the price increase last month was insufficient to meet import costs caused by high global prices.
A price hike is inevitable, shrugs Fowzie. Even petroleum producing countries have raised their retail prices, so we should be ready for it.
During the monthly price review this month, CPC has recommended prices of petrol be raised to 100.00 rupees from 88.00 rupees; diesel to 69.00 rupees from the current selling price of 58.00 rupees and kerosene to 67.00 rupees from the current 38.00 rupees per litre.
CPC recommends a price adjustment every month to the treasury and we are meeting with the finance ministry again to work out a compromise, Fowzie said.
But petrol is heavily taxed in Sri Lanka, while diesel is subsi