LIOC to Increase Fuel Prices Soon?

Reliable petroleum sources revealed that the LIOC was selling petrol at a loss of Rs.22 on a litre while it was losing Rs.16 on a litre of diesel. The main cause for these losses was because of the special tax of 13% imposed earlier on a litre of fuel. Even the Ceylon Petroleum Corporation has to pay these taxes. But as the Ceylon Petroleum Corporation (CPC) is a government concern, that money goes back to the government coffers. So it is not a loss for either the Ceylon Petroleum Corporation or the Ceylon Petroleum Storage Terminal Limited (CPSTL), but only to the LIOC,” sources said.

The LIOC officials recently met Finance Minister Mangala Samaraweera and other top-level government officials in this connection. During the meeting assurance said to have been given to remove the tax. In the event the taxes are not removed as promised, the LIOC Board of Directors will take decision to go ahead with the planned increase. The LIOC cannot sustain itself any longer with the staggering losses it is incurring. Either the government should remove the taxes or increase fuel prices to avert further losses,” LIOC source said. Under these circumstances, despite current fuel crisis, the Lanka Indian Oil Company (LIOC) is reported to be planning to increase fuel prices within the next few weeks, sources disclosed.