No price revision in the near future, assures
Sri Lanka’s gasoline prices, lowest in South East Asia
Sri Lanka has the lowest gasoline prices in the whole of South East
Asia, Petroleum Industries Minister Anura Priyadharshana Yapa said
refuting claims that a revision in fuel prices will be effected in the
“The Ministry is still not in a position to sanction a reduction in
fuel prices at this stage. We assure that prices will not go up if the
price of a crude oil barrel in the world market remains between US $ 100
He said the Ceylon Petroleum Corporation (CPC) and its officials
should be commended as the country did not face a fuel shortage due to
the two damaged pipes and were unable to unload crude oil to Sri Lanka
for a full one month.
Fuel prices were last revised in February 2013.
In response to the Opposition’s allegation that the Government is not
passing on the benefit of low prices in the world oil market to the
consumers, Minister Yapa said it was not factually correct to say that
the CPC benefited by the price reduction in the world market.
“We can give oil to consumers at the rate proposed by the Opposition
if the petrol shed is within the Port. The oil needs to be tested,
unloaded and distributed.”
He said the CPC has to bear Rs. 12 as handling costs per litre up to
the point it reaches the petrol sheds. This includes LC charges, port
tax, NBT, loan interest, storage and transport expenses, salaries and
wages for workers in dealer centres.
To cut down losses, the CPC has also moved away from spot tenders
which demand high premia to long term tenders. As a result of these
measures, the latest COPE report said that the CPC has brought down
their losses from Rs. 97,000 million in 2012 to Rs. 7,900 in 2013.