State Minister of Money and Capital Market and State Enterprise Reforms, Ajith Nivard Cabraal told the media last week that the Government was compelled to increase the price fuel due to the repeated losses incurred by the Ceylon Petroleum Corporation (CPC) which stood at $ 300 million by 2020.
Cabraal said that the loss incurred by the CPC had a direct impact on the banking system.
He also said that the price of petroleum as opposed to Sri Lanka was much higher in several countries including the United States.
The State Minister justifying the Government’s stance further said that the price of petroleum was much higher in countries which had a lower per-capita income rate than Sri Lanka. The Government increased fuel prices sharply on June 11, the first hike in 21 months, a move that will help improve fiscal management but shoot up the cost of living amidst the worsening COVID-19 pandemic.
Petrol Octane 92 is up by Rs. 20 per litre to Rs. 157, Octane 95 by Rs. 23 to Rs. 184, Auto Diesel by Rs. 7 to Rs. 111, Super Diesel by Rs. 12 to 144 and the poor man’s fuel kerosene oil by Rs. 7 to Rs 77.