CPC is forced to increase prices of petrol by LIOC
Fuel prices are set to increase soon, a senior government official cautioned yesterday. This follows a decision by the Lanka Indian Oil Company (LIOC) to increase its prices shortly, citing ‘heavy losses’ and fluctuating crude oil prices in the international market. A senior Finance Ministry official said last night that the Government had not taken a decision, but would be compelled to increase fuel prices if the LIOC increased prices.
‘If the LIOC increases prices, customers will naturally start buying Ceylon Petroleum Corporation (CPC) fuel. This may increase the CPC’s losses as the fuel is being sold at a subsidised price. Therefore, we will be forced to increase prices,” he said. He said fuel prices had not been increased for the past three years. Petroleum Resources Development Ministry Secretary Upali Marasinghe said if the LIOC increased prices, the ministry would have to take a decision regarding prices to prevent the CPC incurring losses.
He said that LIOC did not require government permission to increase prices. LIOC Managing Director Shyam Bohara said discussions were under way to decide on the date to implement the price increase.”It will all depend on the international prices,” he said. He said that the LIOC was at present losing Rs 17 from a litre of petrol and Rs 14 from a litre of diesel.