Fuel price hike - Minister scotches speculation

by Uditha KUMARASINGHE

Petroleum Industries Minister Susil Premajayantha said that the Government has not taken any decision to further increase fuel prices at this juncture. Commenting on speculation that fuel prices will go up again by at least Rs. 15 per litre, the Minister said that this was because the Indian Oil Company (IOC) has sought a Rs. 15 increase per litre on petrol and diesel due to the depreciation of the rupee.

The depreciation of the rupee has now been floated down. Two weeks ago, the selling rate was Rs.131 while it is now around Rs. 127 and the buying rate varies between Rs. 123 to Rs. 124, the Minister told the Sunday Observer.

The Minister said that the current exchange rates are likely to drop below Rs. 125 within the next few weeks. If so, there won’t be any need for a fuel price increase.

“I think the IOC will also realise this.

If the rupee drops below Rs. 125 in the next couple of weeks, the likelihood of losses wouldn’t arise,” the Minister said.