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CPC recommends fuel price hike instead of tax reduction
The Ceylon Petroleum Corporation (CPC) has recommended that a fuel price revision was the only option, instead of removing tax and keeping prices under control, its Chairman Sumith Wijesinghe told the Sunday Times.
The Corporation’s position was conveyed to Energy Minister Udaya Gammmanpila at a meeting between CPC and ministry officials on Friday.
Mr Wijesinghe said the CPC calculations had shown that the situation could not be controlled by adjusting taxes as the losses were rising along with world market price increases with crude oil prices reaching US$ 97 by Friday.
He said the CPC’s call for a government intervention to reduce the losses was made three weeks ago when the prices were lower and the corporation could have managed the situation by adjusting the taxes.
Meanwhile, the decision by the Lanka Indian Oil company to increase 92 Octane petrol and Auto Diesel prices by Rs 5 a litre is also affecting the CPC which more consumers going for CPC fuel.
The CPC expects an increase in the fuel consumption after the country fully reopens with the lifting of travel restrictions next week and schools becoming fully functional by next month.
The Sunday Times learns that the CPC is seeking an increase in the prices of petrol instead of increasing both petrol and diesel prices, as it feels a diesel price increase could have a severe bearing on the cost of living.