(1 US dollar = 109 rupees) The CPC has asked the government to allow an immediate increase in the price of diesel by at least five rupees to reduce current losses of 60 million rupees a month.
From midnight Wednesday diesel prices would go up by three rupees, kerosene by two rupees and furnace oil by two rupees, Petroleum Minister A H M Fowzie told LBO.
Viability
We need to increase prices as soon as possible to remain financially viable, CPC chairman Ashantha de Mel told a news conference.
The rapid increase in international fuel prices is making it unbearable to continue existing subsidies.
CPC has two thirds of the petroleum distribution market, with Lanka IOC, a unit of Indian Oil Corporation having the balance.
The CPC could end up with a loss of 800 million rupees in April if prices were not increased immediately, he said.