CPC chief calls for four fuel price revisions a year

The Ceylon Petroleum Corporation (CPC) has called on the Government to revise fuel price four times a year in keeping with world market prices and exchange rates.

CPC Chairman Sumith Wijesinghe told the Sunday Times the CPC's proposal submitted to the Government through the Ministry was aimed at cutting down losses to the government and the corporation.

According to the proposal, price revisions are to be carried out in February, May, August and November.

“The scheme will ensure that a stable price of fuel is maintained every three months even if there are price changes within the period.” he said.

The CPC proposal comes as its losses had reached a staggering Rs 401 billion, though the corporation showed profits in 2014, 2016, 2017 and 2020.

The chairman said the Central Bank and line ministries had also called for a pricing formula to avert the losses.

Under the proposed scheme, the consumers are expected to benefit if the world market prices reduce.

However, in recent years the international prices have been showing an upward trend.

The price of petrol 92 which stood at US$ 53.30 in 2016 a barrel has now increased to US$ 95.77, while the price of petrol 95 has gone up from US$ 56.13 to US$ 98.65 during the same period.

Auto diesel prices which stood at US $ 52.05 a barrel in 2016 has gone up to US$ 93.45 and Supper Diesel from US$ 53.02 to 95.50.