The Lanka Indian Oil Corporation (LIOC) PLC has requested the Government to increase the price of fuel, due to the stark increase in global oil prices.
LIOC Managing Director Manoj Gupta stated that a request has been made to increase the price of a litre of diesel by a minimum of Rs. 25.
The second fuel supplier in the Sri Lankan fuel market has also requested a price hike of a minimum of Rs. 15-16 price for petrol.
Manoj Gupta said the requests have been put forward in a bid to offset the losses they are incurring at the moment.
Meanwhile, Minister of Energy Udaya Gammanpila has said the Ceylon Petroleum Corporation (CPC) will have no choice but to increase fuel prices if it does not receive any concessions from the Government.
He told reporters yesterday that the decision will be made if the CPC is unable to bear the losses it has incurred thus far.
“It is pointless standing in a queue and filling fuel now. The price hike will not take place today or tomorrow, I can vouch for that,” the Minister said.
Minister Gammanpila further said a decision on the rate of increase was decided after nearly three weeks of discussions following the initial proposal.
He reiterated that a fuel price hike will not be implemented over the next few days.
Earlier yesterday, the CPC announced that fuel prices may have to be increased based on the prevailing situation in Sri Lanka.
CPC Chairman Sumith Wijesinghe revealed that the Ceylon Petroleum Corporation has suffered a loss of Rs. 70 billion by the 31st of August 2021.
Addressing the media yesterday, he said the CPC is incurring a loss of Rs. 14.56 per litre of petrol and Rs. 31.46 per litre of diesel at present.
As a result of the losses incurred by the CPC, there is no other option but to increase fuel prices, the CPC Chairman added.
Sumith Wijesinghe further said Minister Udaya Gammanpila, who is the subject Minister, has been informed in this regard. (NewsWire)