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CPC seeks tax relief to avoid fuel price hike
The Ceylon Petroleum Corporation (CPC) is seeking a waiver of staggering taxes amounting to Rs 2.5 billion a month and has warned of possible fuel price revisions if relief is not granted.
State Minister for Energy Udaya Gammanpila told the Sunday Times the CPC had communicated its position to the Treasury and was awaiting a decision.
“World fuel prices are rising and if tax relief is not granted the option will be a revision of the prices,” he said.
The state minister said the taxes had remained even when the world market prices were low and therefore the taxes should be revised as the prices had now shot up.
He said that at present the CPC was suffering a loss of Rs 17 on a litre of petrol and Rs 10 on a litre of diesel and losses for last year had increased upto Rs 100 billion due to the depreciation of the rupee and operational costs.
“We are expecting a response from the Treasury by Monday,” Mr Gammanpila said.
CPC Chairman Sumith Wijesinghe told the Sunday Times the corporation was suffering a loss of Rs 2.5 billion a month with the increase of world fuel prices to US$ 60-62 a barrel.
“We are requesting that the tax imposed on fuel be completely lifted to ensure for CPC to operate in a viable manner,” he said.
A senior Treasury official said the CPC had made a request to lift the taxes and the Treasury would have to make its own calculations before deciding on granting relief.
“We are planning to have a meeting with Prime Minister and Finance Minister Mahinda Rajapakas tomorrow to decide on the issue of granting relief,” the official said.