As sure as the sun rises, a new fuel price hike is now imminent with both the Ceylon Petroleum Corporation (CPC) and the Lanka Indian Oil Corporation (LIOC) running up huge losses in the first six months of the year, according to market analysts.
Managing Director of the Lanka Indian Oil Corporation Ltd Suresh Kumar said “The result has been our working capital borrowings from the banks have gone up to US$90 million,”
The LIOC Managing Director said that a litre of petrol now retailed at Rs.115 has to be increased by at least Rs.15 and diesel which is sold at Rs.73 per litre has to be hiked by Rs.10 in order for them to survive.
Petroleum Ministry Secretary Titus Jayawardena admitted that they had received a number of requests from the LIOC and said they were watching the situation intensely, but no decision had been so far made to increase fuel prices.
He also conceded that the situation at the Ceylon Petroleum Corporation, the biggest supplier of fuel to the local market was far worse with it sustaining a staggering loss of Rs.7.5 billion in the first three months of this year alone.
When pointed out that with the hurricane season setting in the Mexican Gulf and many a refinery there shutting down as a result it was unrealistic to expect oil prices to come down, Jayewardena said any increase will have to be decided by the government. nation.lk