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| Sunday, 25 July 2004 |
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Petrol price : still a subsidy left by Anton Nonis The price of petrol, though had been increased to Rs.65 per litre, was still short by one rupee, considering the present international market price for it, Ceylon Petroleum Corporation sources told the `Sunday Observer'. They said the price recommended by them was Rs.66 per litre. However, the Government had fixed it at Rs.65, still incurring a loss of one rupee on every litre sold. CPC's monthly sale of petrol was in the region of 30 million litres. Diesel sales amounts to 120 million litres, they said. The calculations of selling prices for fuel (petrol, diesel and kerosene) by the CPC was done by application of the `Monthly Price Adjustment Formula' (MPAF). Sources said the MPAF would be made use of in price calculations of fuel for the next five-year period. Recommendation of any price revisions by the CPC are made to the Treasury on the fifth working day of the month. MPAF uses various data including average exchange rate, average freight rate and the price lending rate all of which are variables, while arriving at the revised price. The CPC's revised price of Rs. 66 per litre for petrol was arrived at last February though the UPFA government continued to sell it on a highly subsidised price of Rs. 57 per litre. Sources said that diesel and kerosene are still continued to be sold at the subsidised rates. Power & Energy Minister Susil Premajayantha said the Government incurs a loss of Rs.300 million a month by selling diesel at the present price of Rs.32 per litre. He said, however, he would make every effort to not to increse the price of diesel, as it might affect the prices of all other commodities. |
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