Formula For Revision of Fuel Prices.

The Ceylon Petroleum Corporation  fixed its current fuel prices when the crude price was 40 dollars a barrel in the world market, but it has now risen to nearly 70 dollars, an official said.

Ministry Secretary Upali Marasinghe said, that Lanka IOC had  raised its prices, which turned most of it’s’ customers towards CPC. Hence, the CPC has to supply 80 per cent of the market demand. As a result the CPC is losing Rs. 38 million a day due to the fuel prices not being increased, says petroleum resources development ministry secretary Upali Marasinghe.

According to him, the per litre losses are between Rs. 14 and Rs. 16 for petrol, between Rs. 6 and Rs. 9 for diesel and Rs. 48 for kerosene oil.

Talks are underway with the finance ministry to introduce a pricing formula to be used  in future as and when fuel price increase in the World market.

But reports say the government is to introduce a pricing formula for fuel as per instructions of the IMF.