Ceylon Petroleum Corporation (CPC) is currently incurring a loss of Rs. 129 on every litre of auto diesel and Rs. 60 on every litre of Octane 92 petrol sold, CPC Chairman D.J. Rajakaruna said while explaining the latest fuel price increase.
According to Rajakaruna, the actual cost of supplying a litre of auto diesel is around Rs. 536, while it is sold at Rs. 407, resulting in a loss of Rs. 129 per litre. He said a litre of Octane 92 petrol costs approximately Rs. 494 to supply but is sold at Rs. 434, resulting in a loss of Rs. 60 per litre.
The CPC Chairman said the Government had been absorbing a significant portion of these losses in recent months in an effort to shield consumers from the impact of rising global oil prices.
He noted that the Government had allocated Rs. 57 billion to support fuel pricing, but the funds set aside for this purpose are expected to be exhausted by the end of June.
Rajakaruna said the increase in global oil prices and the rise in the country’s fuel import bill had contributed to the need for a fuel price revision. He warned that continuing to sell fuel at heavily subsidised rates would place further pressure on the economy and foreign exchange reserves.
He also urged the public to reduce fuel consumption where possible, stating that excessive fuel use could worsen pressure on the rupee and lead to broader economic consequences.
Rajakaruna further said CPC would strengthen monitoring of fuel distribution through the QR code system and take action against fuel station operators who fail to comply with the required procedures. (Newswire)