The Ceylon Petroleum Corporation (CPC) and Lanka Indian Oil Corporation (LIOC) say there is no immediate plans to reduce fuel prices although overseas crude prices are falling sharply.

CPC Chairman CPC Asantha de Mel told The Sunday Times FT that fuel prices are calculated on a monthly average basis and the daily price fluctuations has no bearing whatsoever on the CPC fuel pricing formula. "We have not been raising retail prices in the hope that international prices would come down and if the present trend of declining prices continues we can consider a fuel price reduction next month," he said

LIOC Managing Director K. Ramakrishnan also said there were no plans to cut prices. The company has to pay a levy of Rs. 24.50 per litre on its imports. He said LIOC was selling all its petroleum products at prices on par with the CPC and incurring losses from the sales of petrol due to the additional tax. He added that the price of LIOC petrol will continue to be the same as the CPC.

On average, the CPC sells 45 million litres of petrol and 170 million litres of diesel per month while LIOC sells 15 million litres of petrol and 30 million litres of diesel. World crude fell to US$117 per barrel from US $ 150 some months back.