Energy Minister calls for removal of taxes on fuel
Posted on February 18th, 2022

Courtesy Adaderana

Distribution of fuel has been restricted until the prices are increased, says the chairman of National Employees Union of the Ceylon Petroleum Corporation (CPC).

According to him, shortages of fuel are observed at some filling stations in parts of the country including the Colombo District.

Filling station owners have complained that petrol stocks are inaccessible when diesel stocks are available, or vice versa, or both are unavailable at times.

Against this backdrop, the consumers have been compelled to purchase fuel from Lanka IOC for higher prices, Mr. Ananda Palitha added.

However, Minister of Energy Udaya Gammanpila assured that there is no shortage of fuel in the country at present. The CPC is in possession of adequate stocks of fuel, he added.

The lawmaker also stated that Sri Lanka is currently facing a serious challenge in finding foreign exchange required for purchasing fuel, noting that it is extremely difficult to spend more than two-thirds of the country’s export earnings on fuel purchases.

Amidst this, rumours were rife that CPC fuel prices would be increased tonight, in line with the Lanka IOC’s move. The energy minister, however, refuted these claims.

The CPC had repeatedly sought the go-ahead from the government for a fuel price hike, stressing the dire need to increase prices against the backdrop of rising crude oil prices in the world market.

Addressing a media briefing, Minister Gammanpila stated that he has made a written request from the Finance Minister to remove the taxes imposed on petrol and diesel, so the Ceylon Petroleum Corporation can stay in business.

He lamented that the CPC incurs a loss of Rs.500 million on a daily basis at prevailing prices. 

The lawmaker added that the Central Bank has proposed a fuel price hike, to steady the ship.

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