No fuel price hike

Petrol and diesel prices will not be increased immediately said Petroleum Industries Minister Susil Premajayantha.

Petrol and diesel prices in the world market had increased by 20 percent during the past six months. Since a further price hike will have an adverse effect on the economy, the government will continue to maintain the current prices, he said.

The sale of petrol, kerosene and diesel at the prevailing prices has resulted in heavy losses for the Petroleum Corporation. The losses amounted to Rs. 12,320 million in 2009 and Rs. 26,920 million in 2010, he said.

He said that the corporation’s financial situation has deteriorated further due to the Ceylon Electricity Board’s and Security Forces non-settlement of outstanding bills amounting to over Rs. 8,000 million. The Ministry has called upon the corporation to resume its lucrative business of bunkering, sale of lubricants and tar to overcome the difficult situation, the minister said.

LSAW