Energy Minister Udaya Gammanpila, Minister insisted that although the increase in fuel prices was approved at today’s Cabinet meeting, there will be no increase in fuel prices tonight or tomorrow and therefore there is no need to refuel vehicles unnecessarily.
The Ceylon Petroleum Corporation has proposed to the Cabinet that the price of oil should be increased. It is up to the Cabinet to decide whether to grant a price increase or a concession.
Minister Gammanpila said that if no subsidy system is provided for the Petroleum Corporation it will be necessary to increase fuel prices in the future. This is due to the fact that there must be an increase in the current fuel prices in the world market. The highest oil prices in recent history have been recorded these days. At present the price of a barrel of crude oil is between $ 88 and $ 83.This is predicted to rise to $ 100 in the next couple of months.
If the price of oil is not increased in such a situation, the Ceylon Petroleum Corporation could incur a huge loss and a loss of Rs. 1 billion this month alone, he said.
The proposal to re-establish the Oil Price Stabilization Fund to control oil prices is still being evaluated by a Cabinet sub-committee headed by the Prime Minister.
The Minister of Energy also expressed confidence that the Prime Minister would make proposals in this regard at the Cabinet meeting today.