February, 13 (LBO) – Ceylon Petroleum Corporation will hold fuel prices steady this month with the help of a tax cut on petrol, a top official said. The CPC is expecting a 5 rupee temporary lifting of excise duty on a litre of petrol, CPC Chairman Ashantha de Mel said.
The CPC would have made a loss of 3 rupees a litre on petrol, if the tax was not lifted, on their current costs, he said.
A shipment of 20,000 metric tonne of refined products, is now coming to port, de Mel said.
CPC holds about 80 percent of the petroleum distribution market in Sri Lanka with Lanka IOC holding the balance.
Lanka IOC closely follows the pricing of the market leader.
A 5 rupee duty had been imposed earlier when oil prices fell. The tax is expected to be suspended at least for a month.
More than 30 percent of the price of petrol, used by private cars, three-wheelers and motorcycles is made up of taxes.
Diesel, used by the commercial sector, as well as politicians and high income earners who drive luxury jeeps is marginally taxed in Sri Lanka. (vimasuma.com newsdesk)