No oil price hike in the near future - Fowzie

by Lalin Fernandopulle

Oil prices will not be increased in the near future unless there is a drastic surge in world crude oil prices. The government is planning to make more profits from its refineries to set off the subsidy loss, said Petroleum and Petroleum Resources Development Minister A.H.M. Fowzie in an interview with the Sunday Observer.

He said consumers who are already grappling with the cost-of-living will not be further burdened by increasing oil prices which has a spiral effect.

The government has taken measures to make all petroleum refineries into profitable ventures and expedite the process of oil exploration in the country, the Minister said.

The Minister said his visit to China with President Mahinda Rajapaksa would help speed up the exploration process and enter into agreements for further assistance.

Tenders will be called for offshore oil exploration within the next four months. India and China have expressed willingness to assist in oil exploration.

Fowzie said he will submit a paper for Cabinet approval to use waste products to produce crude oil for consumption and help to reduce environmental pollution.

The project undertaken by the Ceylon Petroleum Corporation (CPC) as a joint venture with a British Company would cost around Rs. 6 million.

He plans to set up the plant and start producing crude oil within two years. The Minister refuting charges that his ministry should have taken steps to store oil when world prices dipped to US$ 50 per barrel last year said that storage facilities needed upgrading.

World crude oil prices have shot up from US$ 50 last year to around US$ 60 per barrel this year and the forecast is that it would increase further due to the crisis in the Middle East.

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