Fuel price hike – Treasury continues to incur losses
[April 05 2011]


<P>By Uditha Kumarasinghe

<P>Petroleum Industries Minister Susil Premajayantha told the Parliament, the
Treasury continues to incur losses running into more than Rs. 2,000 million
per month despite the recent fuel hike of petrol, diesel and kerosene prices.

<P>The Minister said the Treasury has to bear a loss of Rs. 25.38 per litre of
auto diesel and Rs. 38.94 per litre of kerosene despite the Ceylon
Petroleum Corporation (CPC) increased diesel prices by three rupees and
kerosene by Rs. 10.  A litre of petrol too was increased by Rs. 10.

<P>The losses from diesel and kerosene prices alone is costing the
Treasury Rs. 1,024 million monthly, he said.

<P>The Minister said the Treasury has to bear a subsidy of Rs. 686 million to
CEB and 291 million to Kerawalapitiya on monthly basis for supplying
petroleum products at a price less than the cost of import to generate
electricity.

<P>"If the situation in the Middle East stabilize, there is a possibility of
reducing the fuel prices in the future", the Minister said.