CPC Chairman Explains Reasons Behind Recent Fuel Price Increase

Speaking at a media briefing held by the Ceylon Petroleum Corporation (CPC), Chairman Janaka Rajakaruna explained the reasons behind the recent increase in fuel prices.

He said the situation was not an issue affecting Sri Lanka alone, but one that was having an impact across the world.

Although fuel prices had increased significantly, he said the Government and the CPC had provided as much relief as possible to the public.

He said global market prices had risen sharply and that the changes in fuel prices had begun from February.

According to Rajakaruna, the price had increased from Rs. 69 before the war began to Rs. 115, while the Government had allocated Rs. 41 as a subsidy.

He said market analysis indicated that it could take some time for the situation to stabilise.

He further said the CPC was currently facing a loss of around Rs. 66 per litre on diesel, while a loss of Rs. 52 per litre was being incurred on petrol.

He noted that the Government had previously provided a subsidy of around Rs. 100 to provide relief to consumers.

Rajakaruna said the sharp increase in fuel prices was affecting countries around the world. He referred to fuel price increases in other countries, including Pakistan and the United States.

“This is not something affecting only us; it is affecting the entire world,” he said.

He appealed to the public to limit fuel consumption as much as possible and said Sri Lanka had to face the situation as a country.

He warned that if more foreign exchange had to be spent on fuel imports, it could eventually lead to increases in the prices of other goods as well.

On the QR fuel system

Rajakaruna said the QR-based fuel distribution system could be controlled, although some institutions had not followed the relevant procedures.

He said the CPC was currently selling fuel while incurring losses, with the situation being managed through other mechanisms.

Responding to concerns regarding fuel transportation, he said the withdrawal of fuel transportation services would not create a problem and that discussions had already been held on the matter.

He said fuel stations had been instructed to properly implement the QR system and that fuel supplies to stations that failed to comply would be discontinued.

He added that the introduction of the QR system had brought a certain level of control over fuel distribution.