Officials of the Ceylon Petroleum Corporation (CPC) informed the Committee on Public Finance (CoPF) that government fuel subsidies are expected to end this month.
Responding to questions from CoPF Chairman Dr. Harsha de Silva, CPC officials said no decision has yet been made on a fuel price increase.
De Silva also questioned how the CPC is managing foreign exchange buying amid the recent volatility in the market, adding that there was speculation that the volatility was caused by the CPC.
The disclosures come after President Anura Kumara Dissanayake in May revealed that the government was exploring measures, including fuel pricing adjustments, as part of efforts to reduce fuel consumption.
The President said rising global fuel prices had pushed the local cost of a litre of diesel to Rs. 720.
He noted that the CPC continues to operate at a loss, with the government subsidising about Rs. 100 per litre of diesel to maintain the retail price at Rs. 392. (Newswire)
